21.08.202600:55:12UTC+00Japanese Shares Fall as Global Yields Rebound

The Nikkei 225 Index slipped 0.7% to below 66,000 on Friday, while the broader Topix Index lost 0.25% to around 4,050, reversing gains from the previous session. The pullback came as global bond yields rebounded, amid concerns that US efforts to contain borrowing costs through Treasury buybacks might offer only short-lived relief.

The 10-year US Treasury yield climbed back to around 4.7%, wiping out its earlier declines for the week, and Japan’s benchmark 10-year government bond yield also halted a two-day slide. At the same time, data showed Japan’s inflation rate accelerated for a second straight month, bolstering expectations that the Bank of Japan could raise interest rates in the near term. BOJ Governor Kazuo Ueda has previously suggested that policymakers may move to normalize monetary policy at a faster pace.

Technology shares led the selloff, with notable losses in Advantest (-0.8%), Taiyo Yuden (-3.2%) and SoftBank Group (-2.3%). For the week, both indexes were set to post sizable declines, with the Nikkei on track to fall more than 4% and the Topix more than 3%.