Tokyo stocks finished lower Tuesday as investors pocketed recent gains made by technology and other pricey issues. The U.S. dollar was higher against the Japanese yen and the euro.
The Nikkei Stock Average of 225 selected issues shed 29.16 points, or 0.25 percent, to close at 11,821.09 points. The index slipped 73.64 points, or 0.62 percent, on Monday.
The dollar was trading at 104.98 yen at 5 p.m. Tuesday, up 0.38 yen from late Monday in Tokyo and above the 103.88 yen it bought in New York later that day. The currency traded between 104.65 yen and 105.02 yen in Tokyo.
The benchmark Nikkei retreated, after rising in early trade as high as 11,912.81 points, as high technology issues were hit by nagging concerns about the sector's earnings outlook as the March 31 fiscal year-end approaches.
The stock market "was heavy due to selling of pricey high-tech stocks," said Norihiro Fujito, equity strategist at Mitsubishi Securities.
Profit-taking pressure also increased in the afternoon as domestic pension funds began to take profits and adjust positions ahead of the end of the fiscal year, said Cosmo Securities operating officer Hiroshi Sato.
Tech stocks Advantest Corp., Kyocera Corp. and TDK Corp. and autos Honda Motor Co., Nissan Motor Co. and Toyota Motor Corp. fell.
Real estate stocks Mitsubishi Estate Co. and Mitsui Fudosan Co. also declined, as did banks Mitsubishi Tokyo Financial Group Inc. and UFJ Holdings Inc.
The Dow Jones industrial average rose 30.15, or 0.28 percent, to 10,804.51. The Standard & Poor's 500 index gained 6.75, or 0.56 percent, to 1,206.83.
In Tokyo, the broader TOPIX, which includes all issues on the Tokyo Stock Exchange's first section, lost 2.65 points, or 0.22 percent, to finish Tuesday's trading at 1,192.80. The TOPIX lost 4.55 points, or 0.38 percent, on Monday.
On the first section, decliners outpaced advancers 943 to 590, while 117 issues ended unchanged.
In currency trading, the dollar remained relatively stable, moving in a narrow range as many investors awaited the release later this week of U.S. trade and current account data.
The euro fell to $1.3360 late Tuesday in Tokyo from $1.3407 late Monday, and to 140.13 yen from 140.32 yen.