TOKYO, Dec. 19 (Xinhua) -- Tokyo stocks closed lower Thursday on concerns over financial markets' stability and the future course of the global economy following the U.S. House of Representatives voting to impeach U.S. President Donald Trump.
The 225-issue Nikkei Stock Average lost 69.58 points, or 0.29 percent, from Wednesday to close the day at 23,864.85.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, shed 2.29 points, or 0.13 percent, to finish at 1,736.11.
Tokyo stocks slipped into negative territory after opening essentially flat, as investors switched their attention away from the Bank of Japan (BOJ) opting to maintain its monetary policy, a move widely expected despite headwinds from the Oct. 1 consumption tax hike here from 8 to 10 percent that hit consumption.
Local brokers added that ahead of a press conference by BOJ Governor Haruhiko Kuroda due later in the day that the market would be eyeing for clues about the future direction of the central bank's ultra-easy momentary policy, focus shifted to Trump's impeachment and the potential effects on global financial and stock markets.
The U.S. Democratic Party, which holds a majority in the House of Representatives, voted to impeach Trump on abuse of power and obstruction of congress, a move that while might be voted down when the issue passes to the Senate early next year, could affect his support ratings and, as with presidents past, leave a stain on his presidency, sources with knowledge of the matter said here.
"Investors grew risk-averse as the trial may affect the administration's efforts in various areas," Akira Tanoue, a senior strategist in the investment research department at Nomura Securities Co., was quoted as saying.
Losses were capped, however, as investors believe the two-thirds majority required in the Republican-led Senate for Trump's dismissal from office would be unlikely, Tanoue added.
Some investors in a risk-off mood chose to take profits in later trade amid concerns the market may be overheating, after the Nikkei topped the 24,000 line on Tuesday.
"The Nikkei is now trading at 16 times its 12-month forward earnings so it is now on the expensive side for a normal time even though you wouldn't call it a bubble," Nobuhiko Kuramochi, chief strategist at Mizuho Securities, said.
Investors were still mindful of the sell-offs that occurred twice last year after the index crossed the line, technical analysts have indicated.
Amid concerns over other global issues, including those related to Britain leaving the European Union without a deal, as British Prime Minister Boris Johnson has put a no-deal Brexit back on the negotiating table, setting a legal provision preventing him from extending negotiations on the matter behind the end of the year, investors remained in a predominantly circumspect mood Thursday.
As such, cyclical issues highly susceptible to external factors, weighed on the market, with shipping firms and securities brokerages clocking up notable declines.
Issue moving on individual news included Fujifilm Holdings, who added 2.1 percent, after announcing it will acquire Hitachi's imaging business.
Hitachi, for its part, climbed 4.6 percent, after announcing it would sell its chemical unit Hitachi Chemical as well as its diagnostic imaging business, in sales worth 73 billion yen (6.2 billion U.S. dollars).
While Showa Denko, which bought the chemical firm dropped 2.7 percent, Hitachi Chemical surged 11.8 percent by the close on the plan.
Japan Post Holdings retreated 2.1 percent, after an investigation turned up 12,000 cases of insurance product sales over the past five years to March that may have violated laws or rules.
By the close of play, pulp and paper, securities house and miscellaneous product-linked issues comprised those that declined the most, and issues that fell outpaced those that rose by 1,147 to 913 on the First Section, while 98 ended the day unchanged.
On the main section on Thursday, 1,161.78 million shares changed hands, dropping from Wednesday's volume of 1,276.26 million shares.
The turnover on the penultimate trading day of the week came to 1,990.8 billion yen (18.17 billion U.S. dollars).
