The Nikkei stock average closed lower as traders and investors took advtantage of the recent market rally for some profit-taking.

The Nikkei fell 91.17 points, or 0.60% to close at 15,073.47.

But investors were cheered that the benchmark Nikkei average managed to hover above the significant 15,000-point level.

The market retreated after gaining about 800 points in the previous two trading days, traders said.

Earlier losses were recuperated by investor optimism that the government will introduce further measures to stimulate the economy.

Last week, the ruling Liberal Democratic Party agreed to form an alliance with the opposition Liberal Party, which calls for further tax cuts.