BUSINESS Tokyo stocks end mixed on yields, US interest rate concerns


Tokyo stocks end mixed on yields, US interest rate concerns


19:17, March 05, 2021

TOKYO, March 5 (Xinhua) -- Tokyo stocks ended mixed Friday amid continued concerns over a recent surge in U.S. bond yields and higher interest rates, but losses were trimmed ahead of the release of key U.S. jobs data.

File Photo: Xinhua

The 225-issue Nikkei Stock Average lost 65.79 points, or 0.23 percent, from Thursday to close the day at 28,864.32.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 11.44 points, or 0.61 percent, to finish at 1,896.18.

Brokers said that large-cap issues and tech-oriented shares extended losses as investor sentiment continued to be dented by a surge in bond yields impacting corporate borrowing rates.

"The move of the U.S. long-term bond yields is now the center of the attention for stock investors," Yoshihiro Takeshige, general manager at the investment management department of Asahi Life Asset Management, was quoted as saying.

"If the move of yields will become out of control, Japan's market could be dragged lower, led by declines in U.S. technology shares," Takeshige added.

Losses were trimmed however, by expectations that the Bank of Japan (BOJ) had purchased exchange traded funds (ETFs) during trading hours to bolster the market and as part of its monetary easing program.

Investors, market strategists here said, were also keenly awaiting U.S. non-farm payrolls data for February due out later in the day.

"Favorable jobs data could push U.S. bond yields even higher and dent stock markets. But the opposite is also possible, so investors bought back some shares," Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co., was quoted as saying.

By the close of play, real estate, service and marine transportation-linked issues comprised those that declined the most.

Nikkei heavyweight Fast Retailing, operator of the Uniqlo chain of casual clothing stores, dropped 4 percent, while technology issues also came under pressure.

Tokyo Electron lost 2.5 percent, Advantest fell 1.3 percent, while industrial robotics maker FANUC slipped 0.9 percent.

Real estate issues came under pressure as the knock-on effect of rising U.S. bond yields hit Japan and triggered concerns over the sector's rise in liabilities and earnings outlooks.

As such, Sumitomo Realty & Development retreated 3.4 percent, while Mitsubishi Estate lost 3.0 percent by the close.

Exporters marked a bright spot however, gaining traction on the yen's decrease against the U.S. dollar, with Honda Motor accelerating 1.6 percent, while Panasonic added 3.6 percent.

Issues that rose outpaced those that fell by 1,352 to 753 on the First Section, while 89 ended the day unchanged.

On the main section on Friday, 1,430.43 million shares changed hands, rising from Thursday's volume of 1,285.61 million shares.

The turnover on the final trading day of the week came to 3,175.203 billion yen ($29.267 billion).

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