Tokyo stocks ended lower on Thursday for the second consecutive trading day, as selling dominated the market amid a risk-averse atmosphere following the recent downgrade of US treasury bonds.
Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average dropped 548.41 points, or 1.68%, from Wednesday at 32,159.28,
The broader Topix index also continued to fall, losing 33.41 points, or 1.45%, to finish at 2,268.35.
Japanese stocks spread to profit-taking sales following the fall in the US stock market on the previous trading day, weighed by both the downgrade of US treasury bonds by credit rating agency Fitch and the rise in US long-term interest rates.
On Thursday afternoon, the Bank of Japan (BOJ) said it will hold a bond-buying operation after the yield on 10-year Japanese government bonds rose to 0.655%, its highest level since January 2014. The yield has been climbing since it decided last week to allow it to rise above a 0.5% cap toward 1.0%.
The BOJ’s announcement led to the selling of the yen, with the dollar briefly advancing to the upper 143 yen level in the afternoon.
On the Prime Market, decliners were led by nonferrous metal, rubber products and transportation equipment shares.
Issues that fell outpaced those that rose by 1,666 to 158, while 11 ended the day unchanged.
