TOKYO (Kyodo) -- Tokyo stocks ended lower Monday despite the Nikkei index briefly hitting an all-time intraday high, as investors locked in gains after the market's recent rally.

The 225-issue Nikkei Stock Average ended down 131.67 points, or 0.32 percent, from Friday at 40,780.70, after rising as high as 41,112.24. The broader Topix index finished 16.57 points, or 0.57 percent, lower at 2,867.61.

On the top-tier Prime Market, decliners were led by marine transportation, electric power and gas, and insurance issues.

The U.S. dollar fell to the lower 160 yen range before rebounding to the upper 160 yen level as some traders sold the dollar on soft U.S. jobs data for June, dealers said.

The decline in the stock market came after the Nikkei surged over 2,300 points, or 6 percent, over the past two weeks.

Shares fluctuated between positive and negative territory throughout the day with selling taking the upper hand as investors secured recent gains on technical signs of the Nikkei being overbought.

But the benchmark index briefly rose to its all-time intraday high in the early afternoon, driven by gains in technology issues and some Nikkei heavyweights including Softbank Group, as expectations for an interest rate cut by the U.S. Federal Reserve in September improved sentiment.

"Given that the yen is not strengthening despite growing expectations for a U.S. rate cut, the Nikkei's new high would not be a surprise as long as the U.S. economy remains well-supported and the yen stays weak," said Koichi Fujishiro, senior economist at the Dai-ichi Life Research Institute.