TOKYO, Jan. 19 (Xinhua) -- Japan's benchmark Nikkei stock index ended lower Thursday as investors opted to book profits following the market's rise the previous day, after the Bank of Japan (BOJ) decided to stay put on its ultra-loose monetary policy.

The 225-issue Nikkei Stock Average added 385.89 points, or 1.44 percent, from Wednesday to close the day at 26,405.23.

The broader Topix index, meanwhile, lost 19.31 points, or 1.00 percent, to finish at 1,915.62.

Subpar U.S. retail and industrial output data for December triggered renewed concerns over the U.S. economy slipping into a recession, which sent U.S. Treasury yields lower.

As for the U.S. dollar-yen pairing, the U.S. dollar dropped to the mid-127 yen range overnight in New York, with the yen remaining firm in Tokyo. The weaker data saw traders sell U.S. dollars, believing that the U.S. Federal Reserve may soon move to ease its interest rate hikes, market strategists here said.

"Investors' concerns are centering on a slowdown of the U.S. economy. Some of them are worried the Fed might not successfully deliver a 'soft landing' where inflation is curbed without triggering a recession," Tomoichiro Kubota, senior market analyst at Matsui Securities Co., was quoted as saying.

A comparatively firm yen weighed on issues with a broad exposure to overseas markets, as earnings and profits could be negatively impacted by the yen's strength.

Typically, exporters rely on a weak yen to boost profits and price competitiveness in overseas markets, analysts here explained.

Among automakers underperforming owing to the yen's strength versus the U.S. dollar, Mitsubishi Motors skidded down 5.3 percent, Toyota reversed 2.4 percent, while Nissan lost 3.6 percent.

Meanwhile, Mazda Motor ended the day 5.1 percent lower.

Nikkei heavyweights dragged the broader market lower, with Uniqlo clothing chain operator Fast Retailing relinquishing 1.8 percent, while fellow heavyweight tech startup investor SoftBank Group slumped 3.7 percent.

Financial stocks also came under pressure after the BOJ's decision on concerns of falling earnings, with Sumitomo Mitsui Financial Group ending the day 1.8 percent lower.

But inbound tourism-linked issues bucked the downward trend, following government data showing a healthy uptick of visitors in 2022.

As a result, railway operator Central Japan Railway added 0.4 percent, while department store operators Takashimaya and J. Front Retailing gained 2.5 and 3 percent, respectively.

By the close of play, the turnover on the Prime Market on the penultimate trading day of the week came to 2,517.31 billion yen (19.63 billion U.S. dollars). Enditem

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