TOKYO, Feb. 21 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower on Tuesday amid a lack of fresh trading cues and ahead of a national holiday this week and a parliamentary hearing for incoming Bank of Japan (BOJ) chief nominee Kazuo Ueda.
The 225-issue Nikkei Stock Average dropped 58.84 points, or 0.21 percent, from Monday to close the day at 27,473.10.
The broader Topix index, meanwhile, lost 2.25 points, or 0.11 percent, to finish at 1,997.46.
Local brokers said the market lacked clear direction due to Wall Street being closed on Monday for a national holiday, with investors also reluctant to assume fresh positions or make bold moves ahead of a national holiday here on Thursday.
They added that investors were also eyeing Ueda's lower house testimony on Friday, to be followed by his appearance on Monday in Japan's upper house of parliament.
Analysts have highlighted that the market mood has remained wary following the government giving Ueda the nod to head the BOJ, as although he has formally served on the BOJ's board and is a renowned economist, the majority of his career has been spent in academia.
Ueda has also suggested that the central bank's monetary easing policy should be continued for a while, in contrast to other global central banks raising their interest rates to combat inflation, they explained.
"The market is focusing on whether he expresses a negative view over the yield curve control program, although I think he is unlikely to make any remarks about it," Koichi Fujishiro, a senior economist at the Dai-ichi Life Research Institute, was quoted as saying with regards to Ueda's upcoming parliamentary testimony.
Retailers were the main drag on the Nikkei, with Takashimaya Co. Ltd. dropping 2.6 percent, while J. Front Retailing Co. Ltd. lost 2.9 percent.
Technology-oriented issues also lost ground, with Nikkei heavyweight SoftBank Group retreating 0.5 percent and weighing on the broader market, while Sony Group ended the day 0.8 percent lower.
But Nippon Paper Industries Co. Ltd. found favor, climbing 4.9 percent and tire maker Yokohama Rubber Co. Ltd. was another of the Nikkei's top performers, jumping 5.4 percent.
By the close of play, air transportation, land transportation and electric appliance-linked issues comprised those that declined the most.
The turnover on the second trading day of the week came to 2,279.60 billion yen (16.93 billion U.S. dollars). ■