Tokyo stocks close lower

Tokyo stocks closed lower on Wednesday, trimming earlier gains as investors waited to hear Federal Reserve Chair Jerome Powell address the US Congress later in the day.

The benchmark Nikkei 225 index ended down 0.37 per cent, or 96.76 points, at 26,149.55, while the broader Topix index lost 0.19 per cent, or 3.55 points, to 1,852.65.

The dollar bought 136.38 yen, against 136.64 yen in New York late Tuesday when the Japanese currency hit a fresh 24-year low against the greenback.

Shares opened higher in Tokyo as traders took cues from strong rallies on Wall Street following last week’s rout over inflation fears.

But the upward momentum subsided with a wait-and-see mood spreading among investors ahead of Powell’s speech.

The central bank boss’s testimony to lawmakers in Washington on Wednesday and Thursday will be watched for clues regarding the Fed’s plans for fighting surging consumer prices.

Another factor weighing on the market is “growing pressure on day-to-day traders to sell after a temporary recovery” in share prices, Okasan Online Securities said.

Losses in tech shares, especially semiconductor stocks, also helped drag the market lower.

Chip-making equipment manufacturer Tokyo Electron plunged 3.85 per cent to 44,900 yen, while Advantest, a major producer of tools to build semiconductors, fell 2.32 per cent to 7,140 yen.

Toyota climbed 0.81 per cent to 2,156 yen, Sony Group lost 0.82 per cent to 11,370 yen and Uniqlo operator Fast Retailing was up 0.72 per cent at 69,500 yen.