Japan’s Nikkei down as bond yields up

Japan’s Nikkei index fell on Thursday after the sharp rise in bond yields affected shares of technology and real estate companies, but it escaped incurring greater losses in light of the accelerating pace of rise in the banking sector, which benefits from the rise in borrowing costs.

According to Reuters, the Nikkei index closed down 0.35% to 39,442.63 points. The index fell to its lowest level at 39,065.31 points earlier, threatening to slip below the psychological line of 39,000 points for the first time since the end of last week.

The broader Topix index turned losses into gains and ended trading up 0.15%, as a rise in value stocks by 0.42% compensated for losses in growth stocks of 0.13%.

The Nikkei index is still up about 18% this year, reaching an all-time high of 41,087.75 points on March 22.

“Japanese stocks have been the target of profit-taking by foreign investors,” said Shoki Omori of Mizuho Securities.

“There is room for a decline in the long term,” he added, perhaps to 37,500 points.

The benchmark 10-year Japanese government bond yield rose to its highest level in five months at 0.855%, tracking the rise in similar US bond yields after high consumer inflation data led to a decline in bets on when the Federal Reserve (the US central bank) would cut rates. Benefit.

Shares of chip manufacturing equipment giant Tokyo Electron lost 0.94 percent, becoming the biggest loser on the Nikkei index in terms of index points. The smaller Screen Holdings lost more than 2%.

The biggest loser in terms of percentage was 7 & I Holdings, which operates 7-Eleven, as its stock fell 4.8% after it revealed that it was considering listing its department store business on the stock exchange.

Mitsui Fudosan shares fell more than four percent, making it the worst performing real estate stock in the Nikkei Index.

The real estate sector topped the losing stocks among 33 sub-sectors on the Tokyo Stock Exchange, declining 2.2%.

On the other hand, the banking sector rose 2.1% to occupy fourth place, with the various energy sectors occupying the top three positions after the rise in crude oil prices last night.

The mining sector rose 3.7%, the oil and coal sector jumped 2.5%, and the electricity and gas sector advanced 2.4%.