Tokyo shares end lower amid caution after recent advances

Tokyo stocks closed lower on Monday as momentum slowed for shares that had recently performed well, particularly in the areas of artificial intelligence and semiconductors. The Nikkei Stock Average, which tracks 225 major issues, slipped 486.58 points, or 0.73 percent, to 65,877.62, following a Friday close at the same level. The broader Topix index, which includes around 1,000 stocks, fell 16.59 points, or 0.40 percent, to 4,112.00.

Among the top-tier Prime Market stocks, pharmaceutical, mining, and pulp and paper companies were among the biggest decliners. The U.S. dollar remained relatively stable, hovering around 157 yen in Tokyo. The Nikkei index had initially gained earlier in the day as technology stocks continued to attract investor interest, mirroring the performance of U.S. counterparts over the previous week.

Some investors were also looking to lock in their rights to receive dividends before the market closed. However, the index fell back into the red after reaching a record high of 67,000 points for the first time since mid-August. This decline came amid concerns about the rapid gains, which had totaled more than 2,800 points in a five-day winning streak that concluded on Friday.

The lack of fresh trading cues and rising crude oil prices contributed to the cautious sentiment among market participants, according to Masahiro Ichikawa, a chief market strategist at Sumitomo Mitsui DS Asset Management Co.