TOKYO (Kyodo) -- Tokyo stocks ended lower Monday, the first trading day of 2025, as investors took profits following the Nikkei stock index's record year-end close and amid uncertainties over the policies of incoming U.S. President Donald Trump.

The 225-issue Nikkei Stock Average ended down 587.49 points, or 1.47 percent, from Monday last week at 39,307.05. The broader Topix index finished 28.54 points, or 1.02 percent, lower at 2,756.38.

On the top-tier Prime Market, decliners were led by transportation equipment, service and retail issues.

The U.S. dollar hovered primarily in the upper 157 yen range, as the Japanese currency, which briefly slid to the 158 yen level late last year, remains weak due in part to receding expectations the Bank of Japan will hike rates soon, dealers said.

At 5 p.m., the dollar fetched 157.66-68 yen compared with 157.24-34 yen in New York at 5 p.m. Friday. Japanese financial markets were closed from last Tuesday for the New Year holidays.

The euro was quoted at $1.0327-0328 and 162.82-86 yen against $1.0304-0314 and 162.15-25 yen in New York late Friday afternoon.

The yield on the benchmark 10-year Japanese government bond rose to 1.135 percent during after-hours trading, up 0.045 percentage point from last Monday's close and the highest level since July 2011, as the debt was sold on speculation U.S. Treasury yields would remain high following solid U.S. manufacturing data last week. In regular trading hours, the yield ended at 1.125 percent.

Stocks stayed mostly in negative territory throughout the day, briefly declining over 600 points, weighed down by the Dow Jones Industrial Average's four consecutive days of losses while Japan's market was closed.

With Trump returning to the White House later this month, "which policies he announces first is key," said Makoto Sengoku, senior equity market analyst at Tokai Tokyo Intelligence Laboratory Co., noting that uncertainty has driven selling.

The decline was led by export-oriented auto issues, including Toyota Motor Corp., which surged last month after a report that the company aims to double its return on equity target to 20 percent.