TOKYO, May 24 (Xinhua) -- Tokyo stocks closed lower Tuesday as investor confidence was dampened tracking a sharp plunge in U.S. stock futures in after-hours trading, while investors locked in gains after the Nikkei index's two-day rally.
The 225-issue Nikkei Stock Average closed down 253.38 points, or 0.94 percent, from Monday at 26,748.14.
The broader Topix index closed 16.31 points, or 0.86 percent, lower at 1,878.26.
On the top-tier Prime Market, decliners were led by service, pulp and paper, and land transportation issues.
Stocks moved in a narrow range mainly within negative territory throughout the day, stricken by a decline in U.S. stock futures following reports that major U.S. social media firm Snap Inc. expects to miss earnings targets in the current business quarter amid a deteriorating economic environment.
Stocks were also top-heavy as investors took profits when the Nikkei index neared the psychological threshold of 27,000 following its gains of almost 600 points over two days, said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
However, the market's downside was supported by hopes for the resumption of full-scale economic activities in Japan, with people expected to spend money amid a downward trend in COVID-19 cases and further easing of restrictions, he added.
Among Prime Market issues, declining issues outnumbered advancing ones 1,569 to 215, while 53 remained unchanged.
Some technology shares were dampened by a fall in Nasdaq 100 stock futures.
TDK shed 1.6 percent, and Advantest decreased 2.1 percent, while Screen Holdings lost 1.9 percent.
Toyota Motor slipped 0.6 percent, after the automaker said Tuesday it plans to slash its global production plan for June due to a semiconductor shortage.
Z Holdings, the parent company of messaging app provider Line Corp., plunged 3.8 percent, tracking Snap's tumble.
Trading volume on the Prime Market increased to 1,113.51 million shares compared to Monday's 1,097.99 million. ■
