Tokyo stocks end slightly lower before election, earnings season
The 225-issue Nikkei Stock Average fell 14.62 points, or 0.04 percent, from Tuesday at 39,663.40. The broader Topix index finished 5.91 points, or 0.21 percent, lower at 2,819.40.
On the top-tier Prime Market, decliners were led by real estate, pulp and paper and securities house issues.
The U.S. dollar remained firm in Tokyo after hitting a three-month high of 149.03 yen in New York overnight on receding expectations of interest rate cuts by the Federal Reserve following higher-than-expected inflation data for June, dealers said.
Stocks swung between positive and negative territory throughout the day amid growing caution as recent media polls have shown that the ruling parties are facing an uphill battle in Sunday's election and could lose their majority in the upper house, brokers said.
"The Nikkei's 40,000 mark has been perceived by investors as a psychological barrier over the past two weeks," said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co.
"It's difficult for investors to keep buying ahead of the major events, with the earnings season starting after the upper house election," she said.
Meanwhile, heavyweight semiconductor-related shares drew buying after major Dutch chip equipment maker ASML Holding N.V. released solid earnings in the afternoon.
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