TOKYO, Jan. 31 (Xinhua) -- Tokyo stocks closed lower Wednesday as the yen's rise against the U.S. dollar impacted exporter issues and dragged down the broader market, while immigration and trade issues sparked some concerns following U.S. President Donald Trump's first State of the Union address.
The 225-issue Nikkei Stock Average dropped 193.68 points, or 0.83 percent, from Tuesday to close the day at 23,098.29.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 21.42 points, or 1.15 percent, to finish at 1,836.71.
Tokyo stocks were under pressure in early trade following Wall Street's retreat overnight, with losses extending in the afternoon on the yen's appreciation against the U.S. dollar, market strategists here said.
A strong yen weighs heavily on Japanese exporters who rely on a weaker yen to boost profits when they are repatriated.
A weaker yen also brightens profit outlooks for firms with a wide exposure to overseas markets and bolsters their overall price competitiveness.
Technical analysts also noted that some investors took up defensive positions after U.S. President Donald Trump's first State of the Union address could exacerbate conflicts between Republicans and Democrats about immigration.
They said that if political wrangling were to further ensue, the passage of planned economic policies could become hampered.
Market players also said Trump's ongoing recalibration of trade deals could adversely affect markets.
Losses were pared to an extent, however, local traders said, by domestic companies reporting solid earnings for the April-December period attracting buying.
By the close of play, mining, iron and steel, and precision instrument-linked issues comprised those that declined the most by the close of play, and falling issues outpaced rising ones by 1,619 to 388 on the First Section, with 56 ending the day unchanged.
On the main section on Wednesday, 1,820.73 million shares changed hands, rising from Tuesday's volume of 1,702.72 million shares.
The turnover on the third trading day of the week came to 3,632.4 billion yen (33.41 billion U.S. dollars).
