Tokyo stocks mixed on US data, tech losses amid sideways trade

Tokyo stocks closed mixed on Monday, driven by more robust-than-anticipated U.S. economic indicators, while a slump in South Korea's key index and profit-taking hampered the tech-heavy Nikkei index. The 225-issue Nikkei Stock Average closed 488.27 points, or 0.74%, lower at 65,528.09, compared to Friday's level. The larger Topix index added 6.00 points, or 0.15%, to finish at 4,073.29.

On the Prime Market, the biggest gainers were service and construction-related firms, while mining and information and communication sectors registered significant drops. The U.S. dollar hovered mainly in the upper 158 yen range, as market participants maintained a cautious stance before the anticipated announcement of fresh sanctions against Iran by Washington.

Trading activity was relatively subdued ahead of Nvidia Corp.'s earnings report later in the week, as well as the upcoming Jackson Hole economic symposium in Wyoming, where Federal Reserve Chair Kevin Warsh was scheduled to deliver a presentation. Analysts noted that the early part of the week often exhibits indecision due to a concentration of major events later in the week.

Shota Sando, an equity market analyst at Tokai Tokyo Intelligence Laboratory Co., commented, "The beginning of the week tends to be directionless as major events are concentrated later in the week." The Topix index found support from gains on Wall Street last week following a stronger-than-expected S&P Global Purchasing Managers Index for August, which helped alleviate concerns over potential economic slowdown.

However, the benchmark Nikkei index remained mostly in the red, as investors cashed in profits from some technology shares following reports that Nvidia had informed clients of price hikes for its chips, despite expectations that the AI development trend would continue unabated. Additionally, the decline in South Korea's tech-heavy Kospi index, which dropped more than 3%, also put pressure on the Nikkei index.