TOKYO (Kyodo) — Tokyo stocks edged down Wednesday as many investors refrained from trading actively amid growing caution ahead of the House of Councillors election on the weekend.
The 225-issue Nikkei Stock Average fell 35.62 points, or 0.09 percent, from Tuesday to 39,642.40. The broader Topix index was down 8.26 points, or 0.29 percent, at 2,817.05.
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.
At noon, the dollar fetched 148.88-93 yen compared with 148.79-89 yen in New York and 147.73-75 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.1609-1612 and 172.83-94 yen against $1.1595-1605 and 172.65-75 yen in New York and $1.1689-1691 and 172.69-73 yen in Tokyo late Tuesday afternoon.
The stock market was mostly directionless 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.
Stocks were pressured by a fall of the U.S. Dow Jones index overnight after the U.S. consumer price index data raised concern about the impact of higher tariffs on the world’s largest economy, while buying of semiconductor-related shares supported the market.