Tokyo stocks snapped a five-day winning streak Friday, as investors locked in gains after the Nikkei and Topix hit all-time highs, while caution also took hold ahead of U.S. jobs data.
The 225-issue Nikkei Stock Average ended down 1.28 points from Thursday at 40,912.37. The broader Topix index finished 14.29 points, or 0.49 percent, lower at 2,884.18.
On the top-tier Prime Market, decliners were led by marine transportation, transportation equipment and electric power and gas issues.
The U.S. dollar fell to the upper 160 yen range in Tokyo on selling by domestic exporters for settlement purposes, while a wait-and-see mood prevailed ahead of the release of a key U.S. employment report later in the day.
Stocks notched fresh all-time highs in early trading as overnight rises in major European markets boosted sentiment, but the upward momentum soon lost steam as investors locked in profits after the Nikkei benchmark climbed more than 1,500 points over the past five trading days.
Selling took the upper hand amid concerns of an overheated market, as such a sharp rise "usually results in a correction that would bring the index below 40,000 at least once," said Kazuo Kamitani, a strategist in the investment content department of Nomura Securities Co.
A lack of fresh catalysts and caution ahead of the U.S. nonfarm payrolls report due later in the day added to the downward pressure, with a slightly firmer yen also weighing on the market from the afternoon.
"The yen firmed and stocks fell as investors appeared to be adjusting their positions before the U.S. jobs report, which is expected to show a slight slowdown in growth," said Sho Suzuki, a market analyst at Matsui Securities Co.
Hopes for favorable corporate profits ahead of the earnings season on the back of the yen's depreciation drove record closing highs the previous day, the first for the Topix since December 1989 and the first for the Nikkei in around three months.
