Japanese stocks fell for the second day in a row, Thursday, August 3, following the impact of Wall Street, which closed lower yesterday, Wednesday, as higher bond yields in the United States and Japan affected investor sentiment.
The Japanese Nikkei index fell 1.68% to close at 32159.28 points, after falling 2.3% in its largest daily loss in the previous session.
The broader Topix index fell 1.45% to 2268.35 points.
The Nikkei index rose about 5% until Thursday from its lowest level in July.
Japanese 10-year government bond yields rose to the highest level in more than nine years after 10-year US bond yields rose overnight, prompting the Bank of Japan to conduct an emergency bond purchase.
The yen continued its decline after the Bank of Japan announced the emergency purchase, to record a four-week low of 143.89 yen per dollar, limiting the Nikkei’s losses.
Wall Street closed lower overnight, with the Standard & Poor’s 500 and Nasdaq indexes falling for the second day in a row, a day after Fitch downgraded the US government’s credit rating.
TDK shares plunged 10.23% after the sensor maker cut its full-year outlook.
Similarly, Yamaha shares fell 14.57% on the back of the musical instrument maker lowering its annual profit forecast.
But Kawasaki Kisen bucked the trend, rising 4.05% after the shipping company, which includes an investment fund among its shareholders, announced a share buyback in the previous session.
Its peer, Nippon Yusen, also jumped 7.24% to top the Nikkei index after announcing a buyback of 16.7% of existing shares on Thursday.
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