TOKYO, June 30 (Xinhua) -- Japan's benchmark Nikkei stock index ended lower Friday amid speculation over a currency intervention by authorities here to redress the yen's weakness and ahead of key inflation data due out later in the day.
The 225-issue Nikkei Stock Average dropped 45.10 points, or 0.14 percent, from Thursday to close the day at 33,189.04.
The broader Topix index, meanwhile, lost 7.65 points, or 0.33 percent, to finish at 2,288.60.
Market strategists here said a number of warnings by financial authorities, after the yen dropped past the 145 mark against the U.S. dollar, including Finance Minister Shunichi Suzuki saying Friday that market moves were being watched with "an extremely strong sense of urgency," led to a circumspect market mood.
They added that investors refrained from actively chasing the market higher amid mounting speculation Japanese government could intervene in the currency markets to redress the yen's weakness.
"The government will respond appropriately to excessive volatility," Suzuki said, describing recent currency moves as being "rapid and one-sided."
"We have seen rapid and one-sided currency moves recently. The government is monitoring developments in the currency market closely," said Suzuki.
Japan carried out two "stealth" foreign exchange interventions in October to redress the yen's weakness, with the forays into the market following a series of similar warnings such as those issued by financial authorities here recently, analysts highlighted.
Yukio Ishizuki, senior foreign exchange strategist at Daiwa Securities Co. was quoted as saying, "Last year, resource costs were quite high, which, combined with a weak yen, pushed up the prices of goods in Japan. But this time resource costs are actually falling, so the pain of a weak yen is not felt as much."
Market players also hit the sidelines ahead of key inflation data due out from the United States later Friday, strategists here said.
As a result, heavyweight chip issues lost ground as investors took profits, with Silicon wafer maker Shin-Etsu Chemical dropping 0.4 percent, while Tokyo Electron dropped 1 percent.
Medical equipment maker Terumo, meanwhile, ended down 1.5 percent.
Bucking the downward trend, Uniqlo clothing chain owner Fast Retailing gained 1.6 percent, while department store operator Takashimaya surged 7.7 percent after upwardly revising its annual profit outlook.
Fellow department store operator Mitsukoshi Holdings was another notable winner, gaining 2.3 percent.
By the close of play, pharmaceutical, land transportation and wholesale trade-linked issues comprised those that declined the most.
The turnover on the Prime Market on the final trading day of the week came to 3,796.18 billion yen (26.23 billion U.S. dollars). ■