TOKYO, Aug. 2 (Xinhua) -- Tokyo stocks closed lower Thursday following Wall Street's weak lead overnight and the yen's rise against the U.S. dollar spurring profit-taking.
The 225-issue Nikkei Stock Average dropped 398.62 points, or 1.42 percent, from Monday to close the day at 27,594.73.
The broader Topix index, meanwhile, lost 34.62 points, or 1.77 percent, to finish at 1,925.49.
Local brokers said that investors sought the perceived safe haven yen, which pushed its value up against other major currencies, which hurts exporters here relying on a weak yen to boost overseas profits when repatriated.
They added that along with the firm yen, investors also opted to take profits following weaker-than-expected U.S. manufacturing data for July, released Monday, adding to concerns over the health of the world's largest economy, with key employment data in focus this week.
By the close of play, pharmaceutical, precision instrument, and machinery issues comprised those that declined the most, with falling issues outpacing rising ones by 1,620 to 190 on the Prime Market, while 28 ended the day unchanged.
Automakers and tech issues lost ground owing to the yen's rise against the U.S. dollar, with Nikkei heavyweights Yaskawa Electric falling 3.7, while fellow robotics maker Fanuc ended the day 2.2 percent lower.
Among auto issues skidding down, Subaru reversed 1.2 percent, while Suzuki dropped 1.9 percent. Toyota Motor, meanwhile, closed down 2.6 percent.
Hino Motors tumbled 9.9 percent, as its announced falsification of admissions data may be far broader than first suggested, informed sources said.
Bucking the downward trend, TDK rocketed 13.5 percent, after announcing robust quarterly profits, but consumer electronics makers weighed, with Sharp losing 1.2 percent and Panasonic dropping 1.6 percent.
On the Prime Market on Tuesday, 1,160.86 million shares changed hands, dropping from Monday's volume of 1,226.74 million shares.
The turnover on the second trading day of the week came to 2,823.27 billion yen (21.58 billion U.S. dollars). ■
