Japanese stocks give up gains on rising US bond yields – Reuters

TOKYO, Jan 18 (Reuters) – Japanese stocks reversed to close lower on Tuesday as rising U.S. bond yields made investors cautious, sparking a sell-off in market heavyweights.

The Nikkei stock average (.N225) fell 0.27% to 28,257.25, after rising 0.9% earlier in the session. The broader Topix (.TOPX) fell 0.42% to 1,978.38.

“Sentiment was weakened by rising US Treasury yields. Investors thought the US market would fall tonight,” said Shoichi Arisawa, managing director of the investment research department at IwaiCosmo Securities, adding mixed messages from the Bank of Japan after its policy meeting also weighed in. .

The Bank of Japan raised its inflation forecast and signaled increased chances that recent commodity-driven price increases will amplify, the latest sign of its belief that Japan is on a sustainable path out of deflation. Read more

U.S. Treasury yields surged along the curve during Asian trading hours, lifting the shorter end to new pandemic highs, as traders braced for the possibility of a hawkish surprise from the Federal Reserve.

Benchmark 10-year yields rose more than 6 basis points to 1.8550% and fed funds futures plunged as markets rose in March and three more at the end of the month. year.

Japanese stocks traded in positive territory earlier in the session, following a strong overnight finish in European markets. Read more

Uniqlo clothing store owner Fast Retailing (9983.T) ended up 2.37%, while chip-making equipment maker Tokyo Electron (8035.T) edged up 0, 08%. Tech start-up investor SoftBank Group (9984.T) gave up gains to fall 0.4%.

Japanese train operators (.IRAIL.T) climbed 0.59% even as Tokyo and its surrounding prefectures demanded new measures from the central government to help counter rising COVID-19 infections. Read more

But the airliners (.IAIRL.T) gave up early gains to end down 0.62%.

Steelmakers were the worst performers in the Nikkei, with Nippon Steel down 7.08%, JFE Holdings (5411.T) down 6.78% and Kobe Steel (5406.T) down 6.8%. .

Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips and Subhranshu Sahu

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