Japanese stocks close lower as government bond yields rise

Japanese stocks fell in trading on Monday amid a massive sell-off in long-term bonds, as concerns about the country’s fiscal position returned ahead of this month’s upper house elections.

The Tokyo Stock Exchange reported that the 225-issue Nikkei index closed down 0.56%, or 223.20 points, at 39,587.68. The broader Topix index closed down 0.57%, or 16.23 points, at 2,811.72.

In terms of exchange rates, the US currency rose against its Japanese counterpart by approximately 0.35% to 145.05 yen in morning trading, while the yield on 10-year Japanese government bonds rose by about three basis points to 1,463%. Yaskawa Electric shares fell 10.29%, or 324.50 yen, to 2,830.50 yen after the machinery maker lowered its annual operating profit forecast, citing uncertainty surrounding the demand outlook amid the impact of U.S. tariff policies.