Japanese shares end lower as China stocks, U.S. bond yields weigh
TOKYO, March 23 (Reuters) - Japanese shares snapped early gains to end lower on Tuesday, tracking lacklustre performance in Chinese markets as investors locked in profit on a recent rally in some mainland firms, while the volatility of U.S. bond yields also dampened risk appetite.
The Nikkei share average .N225 fell 0.61% to close at 28,995.92, while the broader Topix .TOPX declined 0.94% to 1,971.48.
"The retreat in the afternoon is simply due to the outside factors, such as declines in China stocks and U.S. futures," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
"Investors held their bets as they are still cautious about the direction of the U.S. bond yields."
Treasury yields dipped on Monday, but held near more than one-year highs as investors bet on a faster U.S. economic recovery and higher inflation pressures. US/
Nikkei heavyweights SoftBank Group 9984.T fell 0.9% and Fast Retailing 9983.T lost 0.1%.
Persistent worries of policy tightening in China also continued to weigh on high-flying sectors and stocks with lofty valuations as investors turned cautious.
Companies that rely on China slumped, with robot maker Fanuc 6954.T losing 1.53% and construction machinery maker Komatsu 6301.T shedding 1.24%.
Japan Exchange Group 8697.T jumped 2.78% after the operator of the Tokyo Stock Exchange raised its full-year net profit forecast to 51.5 billion yen ($473.17 million) from 45.5 billion yen. that gained the most among the top 30 core Topix names were Nintendo 7974.T up 1.59 %, followed by Seven & i Holdings 3382.T , up 1.23%.
Mitsubishi UFJ Financial Group 8306.T and Central Japan Railway 9022.T , which lost more than 3% each, were the worst performers among the Topix 30.
The largest percentage gainers in the Nikkei index were Japan Exchange Group, followed by Canon 7751.T gaining 1.95 % and Shionogi & Co 4507.T up 1.76%.
Kawasaki Kisen Kaisha 9107.T , down 7.21 %, was the biggest loser in the Nikkei, followed by Rakuten 4755.T losing 6.69 % and Mitsui OSK Lines 9104.T falling 5.82 %.
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