TOKYO, Dec. 28 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower Wednesday, with heavyweight tech issues dragged down by their U.S. peers' overnight slide and real estate stocks weighing on interest rate concerns.
The 225-issue Nikkei Stock Average dropped 107.37 points, or 0.41 percent, from Tuesday to close the day at 26,340.50.
The broader Topix index, meanwhile, shed 1.13 points, or 0.06 percent, to finish at 1,909.02.
Dealers here said that technology-oriented issues took a hit following the tech-heavy Nasdaq's overnight slide as rising U.S. Treasury yields pressured growth stocks.
They added that following a sharp rise in travel-linked shares a day earlier, some investors opted to log in gains and square positions ahead of the year-end holidays.
"Investors sold shares that had recently risen to lock in gains. There are not many investors who want to go into the year-end holidays without squaring their positions," Naoki Fujiwara, senior general manager at Shinkin Asset Management Co., was quoted as saying.
Real estate issues also lost ground on concerns that the Bank of Japan allowing its long-term interest rates to rise could impact demand for mortgages.
Technology shares retreating included chip-manufacturing equipment maker Tokyo Electron dropping 1.0 percent and Olympus losing 0.8 percent.
Tokyo Tatemono falling 1.6 percent and Mitsui Fudosan losing 1.5 percent, were among real estate-linked shares closing in negative territory.
Higher U.S. long-term interest rates helped lift financial-oriented stocks, including insurers, however, with Tokio Marine Holdings and Dai-ichi Life Holdings adding 2.3 percent and 1.0 percent, respectively.
By the close of play, real estate, information and communication, and air transportation issues comprised those that declined the most.
Issues that fell outpaced those that rose by 911 to 826, while 101 ended the day unchanged, and 1,047.96 million shares changed hands, rising from Tuesday's volume of 889.08 million shares.
The turnover on the third trading day of the week came to 2,322.66 billion yen (17.31 billion U.S. dollars). ■