Tokyo stocks ended mixed Tuesday on concerns over the adverse impact of rising long-term interest rates in Japan, while sentiment was supported by positive U.S. stock futures.
The 225-issue Nikkei Stock Average ended down 44.65 points, or 0.11 percent, from Monday at 38,855.37. The broader Topix index finished 2.14 points, or 0.08 percent, higher at 2,768.50.
On the top-tier Prime Market, decliners were led by metal product and pharmaceutical issues, while electric power and gas, and nonferrous metal issues led the gainers.
The U.S. dollar moved little in the upper 156 yen range amid caution over a potential yen-buying intervention by Japanese authorities to halt the yen's slide, dealers said.
The yield on the benchmark 10-year Japanese government bond briefly rose 0.015 percentage point from Monday's close to 1.035 percent, its highest level since April 2012, amid speculation that the Bank of Japan is moving to normalize its monetary policy faster than expected.
The Nikkei index was mostly in negative territory throughout the day, with high-tech issues particularly weak following their rise the previous day.
"Investors locked in profits as the Nikkei benchmark neared the 39,000 threshold, although the offloading was limited amid a lack of fresh incentives," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
Sentiment was also hurt by a recent rise in the benchmark government bond yield, fueling concerns over higher borrowing costs, analysts said.
But the market's downside was supported by rising U.S. stock futures, as well as the buying of some energy-related issues after an overnight climb in crude oil futures, they added.
"Market participants are now focused on the release of a series of economic data that may affect the decisions at the monetary policy meetings by the BOJ and the U.S. Federal Reserve in June," Yamaguchi said.
