Japanese shares end lower on year-end positioning, rising U.S. yields

TOKYO, March 8 (Reuters) - Japanese shares reversed course to end lower on Monday as some investors adjusted positions ahead of the end of the fiscal year, while concerns over rising U.S. bond yields also weighed on sentiment.

The Nikkei share average .N225 fell 0.42% to close at 28,743.25, while the broader Topix .TOPX edged down 0.14% to 1,893.58.

"Investors are trying to take advantage of the recent rally to adjust their positions toward the end of the fiscal year in March," said Takashi Hiroki, chief strategist, Monex Securities.

Japanese shares made a strong start to 2021, with the Nikkei touching 30,000 level for the first time in 30 years last month on optimism over COVID-19 vaccine rollouts and an economic recovery.

However, domestic equities have weakened in the past few sessions as rising bond yields globally sparked fears that central banks would tighten policy.

"Investors are concerned about the outlook of U.S. rates, while the Bank of Japan's stance on the purchase of exchange-traded funds has not been confirmed," Hiroki said.

On Monday, Uniqlo clothing chain operator Fast Retailing 9983.T lost 1.66%. Fund manager SoftBank Group 9984.T fell 2.36% and chip testing equipment maker Advantest 6857.T declined 3.38%.

Office equipment maker Ricoh 7752.T slumped 6.27%, making it the biggest loser on the Nikkei.

Takeda Pharmaceutical 4502.T jumped 3.91% after the drugmaker said it had sought approval for the use of Moderna 's MRNA.O COVID-19 vaccine. Steel Corp 5401.T advanced 3.32% after it said it would further reduce capacity due to falling domestic demand and intensifying competition from China. biggest oil and gas explorer, Inpex 1605.T , gained 4.56% on the back of higher oil prices. stocks that gained the most among the top 30 core Topix names were Takeda Pharmaceutical, followed by Tokio Marine Holdings 8766.T , which rose 3.72%.