Tokyo stocks ended flat Monday, as early gains on technology buying were pared by investors locking in gains amid caution ahead of U.S. inflation data later this week.

The 225-issue Nikkei Stock Average ended up 17.00 points, or 0.05 percent, from Friday at 32,585.11. The broader Topix index finished 0.10 point lower at 2,336.62.

On the top-tier Prime Market, gainers were led by warehousing and harbor transportation service and rubber product issues, while the leading decliners were chemical and marine transportation issues.

The U.S. dollar briefly rose to a one-year high of 151.80 yen in Tokyo amid expectations the U.S. Federal Reserve will keep interest rates higher for an extended period, raising prospects of a wider interest rate disparity between the countries. The Bank of Japan's ultraeasy monetary policy diverges from the Fed's tightening strategy.

"The view is re-emerging in the market that it's premature to expect (U.S. interest rates) to fall" sooner rather than later, said Takuya Kanda, senior researcher at Gaitame.com Research Institute.

Fears of a currency intervention by Japanese authorities grew stronger as the U.S. currency rose closer to 151.94 yen, a level where the authorities stepped in the market to stem the yen's slide in October 2022, dealers said.

Unless the yen's fall becomes so sharp that the authorities become worried, the market may not see a currency intervention, Kanda added.

At 5 p.m., the dollar fetched 151.73-75 yen compared with 151.48-58 yen in New York and 151.38-39 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.0692-0693 and 162.24-28 yen against $1.0682-0692 and 161.83-93 yen in New York and $1.0662-0664 and 161.41-45 yen in Tokyo late Friday afternoon.

The yield on the benchmark 10-year Japanese government bond ended at 0.870 percent, up 0.020 percentage point from Friday's close, tracking an increase in long-term U.S. Treasury yields. Bond yields move inversely to prices.

Tokyo stocks opened higher, with the Nikkei briefly close to the 33,000 line, on buying of semiconductor and other electronics issues driven by strong advances in the technology-heavy Nasdaq index.

But gains were erased as investors grew cautious ahead of the release Tuesday of the U.S. consumer price index data for October that is seen as a key indicator of whether the Fed has been successful in cooling the U.S. economy, analysts said.

Analysts said investor optimism for no further interest rate hikes in the world's largest economy has faded after Fed Chair Jerome Powell signaled last week the possibility more increases may come.

"With the CPI in the United States to come, hawkish comments from the Fed chair have left investors unable to discount the idea that interest rates could go up again," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute.

Among technology shares that helped support the market, semiconductor manufacturing equipment maker Tokyo Electron climbed 385 yen, or 1.7 percent, to 22,575 yen, while chip-testing device maker Advantest was up 65 yen, or 1.5 percent, to 4,306 yen.

Companies that have recently released financial reports were some of the biggest winners and losers on the Tokyo market.

Major beverage maker Asahi Group Holdings advanced 202 yen, or 3.6 percent, to 5,870 yen, after reporting sales and profit growth in the January-September period due partly to the effect of price hikes and recovering demand for alcoholic beverages.

Cosmetics firm Shiseido tumbled 700 yen, or 14.3 percent, to 4,185 yen, after downgrading its earnings projection for the business year through December, citing slumping sales in China affected by Japan's release of treated radioactive water from the crippled Fukushima nuclear plant into the sea.

==Kyodo

© Kyodo News International, Inc., source Newswire