Tokyo stocks ended lower this morning after a hefty loss warning by Advantest provided a cue for investors to lock in profits following the market's steep two-day climb.
Advantest, a top maker of semiconductor testing devices, tumbled 10.18 per cent to 6,000 yen, helping to knock the tech-sensitive Nikkei average back 1.69 per cent or 179.81 points to 10,452.54.
Massive short covering on major tech shares had helped the Nikkei jump 6.7 percent in the previous two sessions.
The capital-weighted TOPIX index fell 1.44 per cent or 15.70 points to 1,071.78.
"Given uncertainty about retaliation by terrorists on the US and Advantest's woes, there was no convincing reason for players to bid the market higher," said Mr Haruki Takahashi, head of equities dealing at Tsubasa Securities.