17 February 2006, 10:10  Tokyo shares closed lower

Tokyo shares closed lower, as a continued pullback in investments by foreigners overshadowed upbeat December quarter GDP data, dealers said. Foreigners fear a possible uptick in local interest rates would increase their funding costs in Japan and could also squeeze the country's ongoing economic recovery and hurt corporate profits going forward. Recent economic data, including today's GDP, has heightened the possibility of a near term end to the Bank of Japan's ultra-loose monetary policy and a subsequent rise in interest rates which presently stand at almost zero percent. The blue-chip Nikkei 225 Stock Average closed down 330.22 points or 2.1 pct at 15,713.45, after touching a low of 15,702.67. The broader TOPIX index of all first-section fell 26.06 points or 1.6 pct to 1,605.33, off a low of 1,601.97. For the week, the Nikkei 225 index lost 3.3 pct, while the TOPIX also shed 3.3 pct. Losers beat winners 1,439 to 191, with 43 issues unchanged. Volume was 1.95 bln shares, up from 1.75 bln shares yesterday.

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