Tokyo stocks were slightly lower Tuesday morning on weak technology shares, with sentiment weighed down by concerns over rising long-term interest rates in Japan.
The 225-issue Nikkei Stock Average fell 116.75 points, or 0.30 percent, from Monday to 38,783.27. The broader Topix index was down 4.14 points, or 0.15 percent, at 2,762.22.
The yield on the 10-year Japanese government bond briefly climbed 0.015 percentage point from Monday's close to 1.035 percent, its highest level in over 12 years, amid speculation that the Bank of Japan may normalize its monetary policy sooner than expected.
The U.S. dollar moved little in the upper 156 yen range, with investors hesitant to buy the dollar actively amid caution over a potential yen-buying intervention by Japanese authorities to halt the yen's slide, dealers said.
At noon, the dollar fetched 156.75-76 yen compared with 156.90-93 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0874-0878 and 170.45-52 yen against $1.0850-0851 and 170.25-29 yen in Tokyo late Monday afternoon. U.S. financial markets were closed Monday for a public holiday.
Stocks were mostly in negative territory as investors locked in profits in some high-tech issues after the previous day's gains amid a lack of fresh incentives, analysts said.
The market was also pressured by concerns over higher borrowing costs as Japanese interest rates continued to rise on views that the BOJ is shifting away from monetary easing measures, they said.
