TOKYO — The Tokyo stock market’s main index fell Wednesday morning on profit-taking in reaction to a sharp rally the previous day. The dollar was lower against the yen.
The benchmark 225-issue Nikkei Stock Average shed 33.77 points, or 0.23 percent, to 14,391.69 at the end of the morning session. On Tuesday, the average closed up 491.14 points, or 3.52 percent.
The dollar bought 121.86 yen in late morning, down 1.10 yen from late Tuesday in Tokyo and also below its late New York level of 122.17 yen.
On the stock market, the Nikkei index opened slightly higher following a rally on Wall Street, but soon moved into negative territory as investors locked in profits following Tuesday’s sharp gains.
Traders said, however, that trading remained light as many Japanese manufacturing firms were closed this week for Japan’s annual “Golden Week” holiday.
In New York, the Dow Jones industrial average climbed 163.37 points to 10,898.34 at Tuesday’s close. The Nasdaq composite index closed at 2,168.24, up 52.00.
The broader Tokyo Stock Price Index of all issues listed on the first section was up 5.22 points, or 0.37 percent, to 1,416.91 Wednesday. The TOPIX closed up 45.23 points, or 3.31 percent, the day before.
In currency dealings, the dollar slid against the yen in line with its overnight trend in New York, partly because of speculation that the Federal Reserve may cut interest rates for a fifth time this year when it meets May 15.
Lower interest rates tend to make a nation’s currency less attractive to investors.
The yen has recently moved higher against the greenback on expectation Japan’s new Prime Minister Junichiro Koizumi will carry out reforms needed to resuscitate the sputtering economy. Koizumi took office last week.
In other currencies, the euro was traded at 109.20 yen, up from 109.08 yen late Tuesday in Tokyo.
The yield on the benchmark 10-year Japanese government bond rose to 1.3400 percent from Tuesday’s finish of 1.3100 percent. Its price fell 0.26 point to 100.52.
