Tokyo stocks snap 4-day win streak on firmer yen, tariff uncertainty
The 225-issue Nikkei Stock Average ended down 248.10 points, or 0.65 percent, from Wednesday at 38,173.09. The broader Topix index finished 5.75 points, or 0.21 percent, lower at 2,782.97.
On the top-tier Prime Market, decliners were led by service, chemical and transportation equipment issues.
The U.S. dollar weakened to the upper 143 yen range following a report that China is putting a six-month limit on export licenses for its rare earth exports to U.S. manufacturers, raising the prospect of further U.S.-China trade uncertainty, dealers said.
Stocks gave way to profit-taking after the Nikkei gained more than 800 points over the last four trading days. The yen's strength pressured export-oriented automakers, whose overseas profits are boosted by a weaker currency.
Shares in sectors with high oil demand such as airlines and steelmakers were sold on concern about rising energy costs as the key U.S. oil futures contract climbed amid growing tensions in the Middle East, analysts said.
The uncertain outlook over U.S. tariff negotiations with its major trading partners also weighed on the market following the report about China's minerals exports and a remark by the Japanese prime minister that the country will not sacrifice its national interests to reach a deal quickly.
"With prospects of tariff negotiations remaining unclear, investors were finding it difficult to take a risk-on approach," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
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