Tokyo stocks were slightly lower Wednesday morning on concerns over the adverse impact of rising long-term interest rates in Japan.
The 225-issue Nikkei Stock Average fell 65.85 points, or 0.17 percent, from Tuesday to 38,789.52. The broader Topix index was down 7.45 points, or 0.27 percent, at 2,761.05.
The yield on the 10-year Japanese government bond briefly climbed 0.030 percentage point from Tuesday's close to 1.065 percent, its highest level since December 2011, amid lingering speculation that the Bank of Japan is moving ahead with reducing its massive bond purchases as it normalizes its monetary policy.
The U.S. dollar was firm in the lower 157 yen range, briefly hitting its highest level in about a month, on prospects that the interest rate differential between the United States and Japan will remain wide on the back of solid U.S. economic data, dealers said.
At noon, the dollar fetched 157.29-30 yen compared with 157.15-25 yen in New York and 156.88-90 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.0844-0848 and 170.57-64 yen against $1.0852-0862 and 170.60-70 yen in New York and $1.0877-0878 and 170.64-68 yen in Tokyo late Tuesday afternoon.
Stocks were mostly weak in the morning as the recent rise in the benchmark government bond yield fueled concerns over higher borrowing costs, while a fall in U.S. stock futures also dented sentiment, analysts said.
But the markets briefly rose into positive territory, supported by high-tech shares after the technology-heavy U.S. Nasdaq index closed at a record high overnight, they added.
