Tokyo stocks fall as chip shares sold, gains locked in
The 225-issue Nikkei Stock Average ended down 457.96 points, or 1.10 percent, from Friday at 40,998.27. The broader Topix index finished 21.13 points, or 0.72 percent, lower at 2,930.73.
On the top-tier Prime Market, decliners were led by bank, information and communication, and electric appliance issues.
The U.S. dollar was directionless in the upper 147 yen range in Tokyo on Monday, as investors adopted a wait-and-see stance ahead of monetary policy meetings in Japan and the United States later this week, dealers said.
Stocks initially rose on news of a trade deal between the United States and the European Union, under which Washington will impose a 15 percent across-the-board tariff on cars and most other goods from the 27-member bloc.
But the market soon slipped into negative territory as investors sold heavyweight chip-related issues and bank shares that rose sharply last week.
Advantest plunged 9.0 percent to 10,465 yen after UBS Securities Japan Co. downgraded its rating on the chip testing equipment maker to "sell" from "neutral," citing that demand for a mainstay testing device is expected to weaken from the July-September period.
"In addition to the downgrade, many investors wanted to secure gains after the surges and opted to sell before Japan and U.S. monetary policy meetings and due to Japanese political uncertainty," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
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