Tokyo stocks retreated Wednesday, with Japan's key Nikkei stock index shedding 0.17 percent at the close in Tokyo, having moved in a narrow range throughout the day, as commodities were sold to lock in gains following the Nikkei's rise to more than a seven-month closing high on Tuesday.
Brokers said that some issues came under selling pressure as profit-taking was the major theme behind investors' moves on Wednesday, following the market's spike on Tuesday, but an ongoing sense of optimism about the health and direction of the U.S. economic recovery capped losses.
Analysts also noted that due to recent robust figures showing expansion in the U.S.'s manufacturing sector, orders for factory goods and growth of its overall economy, market players were not overly keen to send share prices lower.
Coupled with this, some investors took up passive stances ahead of key jobs data due out from the Uinted States later this week and U.S. and Japanese corporate earnings seasons, both of which will swing into gear forthwith.
"Expectations have been growing that we will continue to see economic recovery in the United States and market players do not seem willing to send shares sharply lower," said one local equities manager.
"Expectations for a global economic recovery led by the U.S. are mounting, but investors will likely be in a wait-and-see mood until the jobs data at the end of the week," added Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc. " Investors are buying dollars on the outlook for the U.S. economy, leading to lower commodity prices."
Meanwhile, orders for capital goods rebounded after falling in October, the commerce department said.
The 225-issue Nikkei Stock Average fell 17.33 points from Tuesday to 10,380.77, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 0.11 point, or 0.01 percent, to close at 911.69.
With the Japanese yen falling to as low as 82.28 versus the U.S. dollar on Tuesday after stock trading closed in Tokyo, compared with 82.14 at Wednesday's close, export-related issues got a boost led by Japan's automakers.
Exporters like Tokyo Motor cheer a weaker yen as revenue made abroad isn't diminished when repatriated.
Toyota, the world's largest automaker who is reliant on foreign countries for some 70 percent of its total revenue, added 0.9 percent to 3,295 yen and Mazda Motor Corp., Japan's second-largest car exporter, climbed 2.5 percent to 242 yen.
Other exporters advanced on individual news, with Toshiba Corp. jumping 2.5 percent to 460 yen, following a report in the Nikkei newspaper that the company will develop a pressurized-water nuclear reactor with China's state nuclear power company.
Pioneer Corp. gained 2.4 percent to 349 yen, following the company's share price estimate being increased to 400 yen from 360 yen at Barclays Capital.
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Brokers said that some issues came under selling pressure as profit-taking was the major theme behind investors' moves on Wednesday, following the market's spike on Tuesday, but an ongoing sense of optimism about the health and direction of the U.S. economic recovery capped losses.
Analysts also noted that due to recent robust figures showing expansion in the U.S.'s manufacturing sector, orders for factory goods and growth of its overall economy, market players were not overly keen to send share prices lower.
Coupled with this, some investors took up passive stances ahead of key jobs data due out from the Uinted States later this week and U.S. and Japanese corporate earnings seasons, both of which will swing into gear forthwith.
"Expectations have been growing that we will continue to see economic recovery in the United States and market players do not seem willing to send shares sharply lower," said one local equities manager.
"Expectations for a global economic recovery led by the U.S. are mounting, but investors will likely be in a wait-and-see mood until the jobs data at the end of the week," added Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc. " Investors are buying dollars on the outlook for the U.S. economy, leading to lower commodity prices."
Meanwhile, orders for capital goods rebounded after falling in October, the commerce department said.
The 225-issue Nikkei Stock Average fell 17.33 points from Tuesday to 10,380.77, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 0.11 point, or 0.01 percent, to close at 911.69.
With the Japanese yen falling to as low as 82.28 versus the U.S. dollar on Tuesday after stock trading closed in Tokyo, compared with 82.14 at Wednesday's close, export-related issues got a boost led by Japan's automakers.
Exporters like Tokyo Motor cheer a weaker yen as revenue made abroad isn't diminished when repatriated.
Toyota, the world's largest automaker who is reliant on foreign countries for some 70 percent of its total revenue, added 0.9 percent to 3,295 yen and Mazda Motor Corp., Japan's second-largest car exporter, climbed 2.5 percent to 242 yen.
Other exporters advanced on individual news, with Toshiba Corp. jumping 2.5 percent to 460 yen, following a report in the Nikkei newspaper that the company will develop a pressurized-water nuclear reactor with China's state nuclear power company.
Pioneer Corp. gained 2.4 percent to 349 yen, following the company's share price estimate being increased to 400 yen from 360 yen at Barclays Capital.
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