1st LD Writethru: Tokyo stocks close down on maglev train contractor scandal concerns

TOKYO, Dec. 19 (Xinhua) -- Tokyo stocks closed lower Tuesday with advances made in earlier trade reversed due partly to an antitrust scandal involving Japan's major contractors winning contracts for a maglev train project rattling market nerves.

The 225-issue Nikkei Stock Average shed 33.77 points, or 0.15 percent, from Monday to end the day at 22,868.00.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, edged down 2.72 points, or 0.15 percent, to finish at 1,815.18.

The market drew support from Wall Street overnight amid hopes the passage of a U.S. tax reform bill will be a boon for the world's largest economy, local brokers said.

They added, however, that with the tax bill largely factored in, investors' attention turned to an unfolding antitrust scandal involving four of Japan's largest contractors who have won contracts for Japan's first commercial high-speed maglev train project.

Market analysts said that concerns resurfaced about corporate government in Japan, following a slew of high-profile scandals rocking the manufacturing industry here recently.

Obayashi Corp.'s admission Tuesday that it colluded with three other major contractors, Taisei Corp., Kajima Corp. and Shimizu Corp., to obstruct bids, rattled market nerves again, they said, adding that construction-linked issues notably retreated in trade on Tuesday.

Construction and marine transportation-oriented issues comprised those that declined the most by the close of play, and falling issues beat rising ones by 1,265 to 698, on the first section, with 91 ending the day unchanged.

On the main section on Tuesday, 1,458.99 million shares changed hands, dropping from Monday's volume of 1,613.63 million shares.

The turnover on the second trading day of the week totaled 2,391.2 billion yen (21.25 billion U.S. dollars). Enditem