Tokyo stocks closed lower on US concerns, profit-taking

AFP/APP – Tokyo stocks closed lower Friday on worries over the US economy as Treasury yields hit multi-year highs while investors took profit amid a number of corporate earnings reports with caution ahead of key US jobs data.

The benchmark Nikkei 225 index lost 0.90 percent, or 211.58 points to close at 23,274.53, while the broader Topix index ended the session down 0.33 percent, or 6.24 points, at 1,864.20.

"Share prices in Japan, like in the US, appear to have heated up too much on expectations of solid earnings reports, and some are seen taking profits," said Mutsumi Kagawa, senior strategist at Rakuten Securities, in a commentary.

Some dealers were also taking to the sidelines ahead of US jobs data due later Friday, analysts said.

The dollar traded at 109.70 yen in late Asian trade, up from 109.39 yen in New York.

On Thursday, the yield on the 10-year US Treasury hit 2.789 percent, its highest level since April 2014.

The high yield weighed on global markets as it stirred fears the US economy may slow down and that flows of cash may shift from stocks to higher yielding bonds.

In Tokyo, ANA dropped 4.06 percent to 4,344 yen after the airline maintained its full-year profit forecasts despite record turnover.

Game giant Nintendo dropped 2.17 percent to 47,170 yen while Advantest, a manufacturer of chip-making equipment, fell 2.24 percent to 2,265 yen.

Sony ended up 1.85 percent at 5,485 yen before announcing that its profit in the nine months to December soared more than tenfold while upgrading its full-year forecast.

After the market close, the electronics giant said it now forecasts annual net profit of 480 billion yen, up from a previous forecast of 380 billion yen.

Honda closed up 0.80 percent at 3,890 yen before it announced an upgrade of its annual profit forecast.

After the market closed, Honda said it expects net profit of one trillion yen ($9 billion), nearly double the previous forecast.