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Tokyo stocks mixed as weak yen lifts exporters, Ueda remarks eyed
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TOKYO (Kyodo) -- Tokyo stocks ended mixed Wednesday, as a weaker yen boosted exporter-related issues while investors cautiously awaited remarks by Bank of Japan Governor Kazuo Ueda after the central bank kept interest rates unchanged.
The 225-issue Nikkei Stock Average ended down 93.54 points, or 0.25 percent, from Tuesday at 37,751.88. The broader Topix index finished 12.40 points, or 0.45 percent, higher at 2,795.96.
On the top-tier Prime Market, gainers were led by wholesale product, electric power and gas and transportation equipment issues.
The U.S. dollar briefly rose to around the 150 yen line after Ueda said the BOJ would be considerate of risks from aggressive U.S. tariff policies in determining future monetary policy but later dropped to the lower 149 yen range on profit taking.
At 5 p.m., the dollar fetched 149.27-29 yen compared with 149.24-34 yen in New York and 149.83-84 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.0892-0893 and 162.59-63 yen against $1.0938-0948 and 163.41-51 yen in New York and $1.0934-0936 and 163.83-87 yen in Tokyo late Tuesday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.515 percent, up 0.015 percentage point from Tuesday's close.
Stocks initially rose as the yen's depreciation lifted exporters, as a weaker currency lifts their repatriated earnings. The BOJ decision to refrain from further tightening of monetary policy also provided support for equities.
But investors unwound their positions in the afternoon as a cautious mood prevailed before Ueda's press conference, analysts said.
The market also adopted a wait-and-see stance ahead of a policy decision by the U.S. Federal Reserve on Wednesday, while the Japanese market will be closed Thursday for a national holiday.
"Markets could move significantly based on comments of Ueda or (Fed chief) Jerome Powell," said Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co. "Investors in Japan are unable to react tomorrow, so they're acting with an excess of caution today."
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