This photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) — Tokyo stocks ended mixed Thursday, as sentiment improved on falls in Japanese government bond yields and some heavyweight shares, while the U.S. dollar fell sharply against the yen on expectations of an interest rate hike by the Bank of Japan.
The 225-issue Nikkei Stock Average ended down 111.16 points, or 0.17 percent, from Wednesday at 64,214.48. The broader Topix index finished 20.44 points, or 0.50 percent, higher at 4,102.04.
On the top-tier Prime Market, the main gainers were electric power and gas issues as well as wholesale trade shares, while mining and nonferrous metal were notable decliners.
The dollar was sharply lower against the yen, dropping below the 157 yen range in Tokyo amid speculation the BOJ will raise its rates at a policy meeting later this month after hawkish BOJ policymaker Hajime Takata stressed the need for an early hike.
Fading prospects of a further rate hike by the Federal Reserve also boosted the yen after comments by New York Fed President John Williams in a CNBC interview. He said a U.S. interest rate hike would not be necessary, raising hopes that the U.S.-Japan interest rate gap could narrow.
The benchmark 10-year Japanese government bond yield, which recently topped the 3 percent mark, fell in tandem with U.S. Treasury yields, improving investor sentiment in the stock market.
The Nikkei stock index failed to gain upward momentum due to falls in some heavyweight shares including Fast Retailing, the Uniqlo chain operator, after the company on Wednesday reported a decline in sales in August from a year earlier.