TOKYO , Jan. 23 -- ( Kyodo ) _ (EDS: ADDING INFO) Tokyo shares gave up early gains to finish Thursday lower as weaker-than-expected Chinese factory activity data prompted investors to lock in recent gains. The 225-issue Nikkei Stock Average ended down 125.07 points, or 0.79 percent, from Wednesday at 15,695.89. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 12.11 points, or 0.93 percent, lower at 1,287.52. Tokyo shares opened higher, supported by the U.S. dollar's climb to the upper 104 yen range and Prime Minister Shinzo Abe's remarks at the World Economic Forum in the Swiss resort of Davos that Japan will "set about further reform on corporate tax this year." The Nikkei rose to a two-week intraday high slightly below the 16,000 threshold soon after the opening, but its early gains were quickly erased after the release of the HSBC Flash China Manufacturing Purchasing Managers' Index, which fell to 49.6 in January from 50.5 in December. "The figure was worse than expected and came below 50. That affected the market," said Hiroaki Hiwada, strategist at Toyo Securities Co. Tokyo shares widened their falls toward the end of the day's trading, as the dollar reversed course to fall to the lower 104 yen range and also reflecting slack Asian stocks' performance. Yutaka Miura , a senior technical analyst at Mizuho Securities Co. , said the Nikkei will likely stay top-heavy for a while, noting that there is a risk that U.S. shares, which often offer incentives to Japanese stocks, will be sluggish ahead of the upcoming Federal Reserve's policy meeting next week. Touching on Tokyo shares' recent close correlation with the performance of the dollar against the yen in foreign exchange markets, Miura said, "Unless (the dollar) rises over 105 yen , it would be difficult (for the Nikkei) to surpass the 16,000 threshold." Declining issues outpaced advancing ones 1,504 to 215 on the First Section, while 59 closed unchanged. All of the 33 industry indexes fell, with the metal, electric power and gas, information and communication sectors leading the way. Among utility shares, Chubu Electric Power lost 35 yen or 2.7 percent to 1,288 yen while Osaka Gas slid down 8 yen or 1.8 percent to 428 yen . Companies with upbeat earnings reports were the day's few bright spots. Nidec climbed 620 yen or 5.6 percent to 11,715 yen after raising its already record-high sales and net profit forecasts for the current fiscal year further on robust sales of motors for vehicles. Japan Aviation Electronics Industry jumped 210 yen or 14.1 percent to 1,695 yen after raising 16 percent of its net profit forecast for the current business year on robust demand of connectors for use in smartphones and tablet computers. Trading volume on the main section came to 2,906.59 million shares, up from Wednesday's 2,664.14 million shares.
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