Japan's Nikkei falls after sharp gains, Treasury yields rise weighs

Ajinomoto Co

07/11/2023 01:53

TOKYO, Nov 7 (Reuters) - 
    Japan's Nikkei share average fell on Tuesday as investors
sold stocks to lock in profits after a sharp rally, with an
overnight climb in U.S. Treasury yields turning sentiment.
  
    By 0130 GMT, the Nikkei  .N225  had fallen 0.82% to
32,441.52. The index closed at more than a one-month high in the
previous session after gaining 6.5% in a fourth straight session
of gains.
    The broader Topix  .TOPX  was down 0.56% to 2,347.18.
    "The Nikkei was losing momentum until last week because
investors sold stocks amid rising trend of U.S. Treasury yields.
They bought back stocks in the past four sessions, driven by the
downward trend of U.S. Treasury yields," said Takehiko Masuzawa,
trading head at Phillip Securities Japan. 
    U.S. Treasury yields climbed overnight as investors grew
cautious about large auctions of notes and bonds in the week
that could determine whether there is enough demand for U.S.
government debt to push rates lower again.  US/ 
    "A pause in declines in the U.S. Treasury yields became a
cue for a sell-off for those who wanted to lock in profits,"
said Jun Morita, general manager of the research department at
Chibagin Asset Management.
    Heavyweight chip-making equipment maker Tokyo Electron
 8035.T  lost 1.19% to drag the Nikkei the most.
    Uniqlo brand owner Fast Retailing  9983.T  slipped 0.17%. 
    Ajinomoto  2802.T  lost 7.14% to become the worst performer
on the Nikkei CHECK even as the food maker raised its annual net
profit forecast.
    JSR  4185.T  fell 1.6% after the chip materials maker
slashed its operating profit forecast for the current financial
year by 62%.
    Hitachi Zosen  7004.T  rose 5.59% to become the top
performer on the Nikkei after the machinery maker raised its
annual profit forecast. 
   

 (Reporting by Junko Fujita; Editing by Nivedita Bhattacharjee)
 ((junko.fujita@thomsonreuters.com;))