Japan's Nikkei snaps 4-day winning streak as US Treasury yields rise

Ajinomoto Co

07/11/2023 06:37

TOKYO, Nov 7 (Reuters) - Japan's Nikkei share average
lost more than 1% on Tuesday, snapping a four-session gaining
streak, as investors sold stocks to lock in profits after a
sharp rally, with an overnight climb in U.S. Treasury yields
turning sentiment.
    The Nikkei  .N225  closed down 1.34% at 32,271.82. The index
closed at more than a one-month high in the previous session
after gaining 6.5% in four sessions.
    The broader Topix  .TOPX  ended 1.17% lower at 2,332.91.
    "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.
    Uniqlo brand owner Fast Retailing  9983.T  slipped 0.92% to
drag the Nikkei the most. Chip-making equipment maker Tokyo
Electron  8035.T  lost 1.37%.
    Ajinomoto  2802.T  tanked 10.21% to become the worst
performer on the Nikkei even as the food maker raised its annual
net profit forecast.
    JSR  4185.T  fell 1.46% after the chip materials maker
slashed its operating profit forecast for the current financial
year by 62%.
    Hitachi Zosen  7004.T  rose 4.25% after the machinery maker
raised its annual profit forecast. 
   

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