Tokyo Stocks Slip as Political Optimism Fades and Bond Yields Hit Record Highs
Japan’s Nikkei index extended its decline for a second session as investors took profits following a strong rally driven by expectations of fiscal stimulus.
The benchmark fell 0.32 percent to 53,936 points, while the broader Topix index slipped 0.28 percent, signaling a pause in the momentum that supported gains earlier in the week.
Analysts said the market entered a consolidation phase after climbing more than 4 percent, with attention focused on political developments surrounding a possible dissolution of parliament and early elections.
Among individual stocks, losses in Fast Retailing and Tokyo Electron weighed on the index, while Advantest and Fujikura posted modest gains.
In the bond market, the five-year Japanese government yield hit a record 1.645 percent as the yen weakened, fueling expectations that the Bank of Japan may raise interest rates sooner than anticipated and adding pressure to equity sentiment.
The benchmark fell 0.32 percent to 53,936 points, while the broader Topix index slipped 0.28 percent, signaling a pause in the momentum that supported gains earlier in the week.
Analysts said the market entered a consolidation phase after climbing more than 4 percent, with attention focused on political developments surrounding a possible dissolution of parliament and early elections.
Among individual stocks, losses in Fast Retailing and Tokyo Electron weighed on the index, while Advantest and Fujikura posted modest gains.
In the bond market, the five-year Japanese government yield hit a record 1.645 percent as the yen weakened, fueling expectations that the Bank of Japan may raise interest rates sooner than anticipated and adding pressure to equity sentiment.
