Tokyo stocks close lower on profit-taking

AFP PHOTO / KAZUHIRO NOGI

"As trading has gotten thinner with a lack of fresh trading factors, investors appear (to be) cashing in on their recent gains," said Hikaru Sato, senior technical analyst at Daiwa Securities.

"Sluggish trading is expected to continue for now as the market is in holiday mode," Sato told AFP.

The benchmark Nikkei 225 lost 0.20 per cent, or 46.49 points, to close at 22,892.69 while the broader Topix index was down 0.27 per cent, or 4.92 points, at 1,827.01.

"It is difficult to see a clear direction in the market as foreign investors are absent from trade with transaction volumes low," Okasan Online Securities said in a commentary.

Investors are awaiting the release Thursday of minutes from the Bank of Japan's policy meeting last week, it said.

The dollar changed hands at ¥113.29, almost unchanged from ¥113.25 in Tokyo late Monday.

Some blue-chip shares were lower, with Nintendo losing 1.60 per cent at ¥41,680 and Canon trading down 0.47 per cent at ¥4,398.

Mitsubishi UFJ Financial was down 0.45 per cent at ¥836 while its rival Sumitomo Mitsui Financial slipped 0.67 per cent to ¥4,884.

Chinese stocks ended higher on Tuesday, led by heavyweight banking and gas-related shares.

The benchmark Shanghai Composite Index advanced 0.78 per cent, or 25.66 points, to close at 3,306.12.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, climbed 0.43 per cent, or 8.13 points, to 1,892.02.

"The markets regained some of the ground lost in previous sessions but it is hard to predict if they will maintain steam as the end of year approaches," said Zhang Yanbing, an analyst with Zheshang Securities.

South Korean shares closed down 0.54 per cent on profit-taking by investors following last week's rally.

Financial markets in Hong Kong, Jakarta, Sydney and Wellington were closed for the holidays.