Japan’s stocks fell after Wall Street losses

Japanese stocks fell for the second day in a row today, Thursday, following the impact of Wall Street, which closed lower yesterday, Wednesday, as the rise in bond yields in America and Japan affected investor sentiment.

The Japanese Nikkei index fell 1.68% to close at 32,159.28 points, after falling 2.3% in the largest daily loss in the previous session.

The broader Topix index fell 1.45% to 2268.35 points.

The Nikkei index has risen about 5% to date from its lowest level, which it recorded in July

Japanese 10-year government bond yields rose to the highest level in more than 9 years after US 10-year bond yields rose overnight, prompting the Bank of Japan to conduct an emergency bond purchase.

Yen continued its decline after the Bank of Japan announced the emergency purchase, to record its lowest level in 4 weeks at 143.89 yen per dollar, which limited the losses of the Nikkei index.

Wall Street closed lower on Wednesday, with the Standard & Poor’s 500 and Nasdaq indexes falling for the second day in a row, a day after Fitch downgraded the US government’s credit rating.

TDK shares fell 10.23% after the sensor maker cut its full-year forecast, and Yamaha shares fell 14.57% on the back of the musical instrument maker lowering its annual profit forecast.

As for Kawasaki Kisen, it bucked the trend and rose 4.05% after the shipping company, which includes an investment fund among its shareholders, announced a buyback of shares in the previous session.

Its peer, Nippon Yusen, also jumped 7.24 percent to top the Nikkei index, after announcing a buyback of 16.7 percent of the current shares today.