Tokyo stocks close lower on rising US yields

Tokyo stocks fell on Tuesday after a strong rally the day before, as rising US yields worried investors.

The Nikkei 225 index fell 0.33 percent, or 89.63 points, to 27,279.80, while the Topix index fell 0.51 percent, or 9.77 points, to 1,912.67.

The dollar stood at 127.79 yen, against 127.59 yen in London, with US markets closed for Memorial Day.

After adding more than two percent on Monday, the Nikkei started the session lower and struggled to find a sense of direction throughout the day, analysts said.

Rising US treasury yields and surging oil prices encouraged selling, but “the market struggled to find cues” with Wall Street off on Monday, Okasan Online Securities said.

Read More: European stocks markets mainly dip at open

Meanwhile, fresh data showed that the contraction gripping Chinese manufacturing slowed in May from the previous month, providing support for global investor sentiment.

Ahead of the opening bell, the Japanese government said the unemployment rate stood at 2.5 percent in April.

Also in April, retail sales values picked up by a seasonally adjusted 0.8 percent and factory production dropped 1.3 percent.

“While employment recovered sharply… the weakness in both goods production and goods consumption last month suggests that the economy’s (second quarter) rebound could be more muted than expected,” Capital Economics said.

Sony Group increased its share price by 1.00 percent to 12,115 yen, while Uniqlo operator Fast Retailing increased its share price by 0.57 percent to 61,950 yen. Nintendo’s share price fell 1.56 percent to 57,420 yen.

Advantest, which manufactures semiconductor testing tools, rose 1.25 percent to 8,900 yen, while Mitsubishi UFJ Financial Group fell 1.16 percent to 729.7 yen.

Read More: Tokyo stocks open lower

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