Japanese Shares End Lower as Index Heavyweights Retreat

TOKYO, March 5 Reuters Japanese shares fell for a second straight session on Friday, dragged down by losses in index heavyweights and technology shares, as rising U.S. bond yields hit investor sentiment.

The Nikkei share average edged down 0.23 to 28,864.32 and recorded its second straight weekly loss. The broader Topix closed 0.61 lower at 1,896.18.

The declines followed a weaker overnight finish on Wall Street that left the Nasdaq down nearly 10 from its February record high, as remarks by Federal Reserve Chair Jerome Powell failed to calm investors worried about rising longerterm U.S. bond yields.

U.S. Treasury yields jumped during U.S. trading hours after Powells speech, sending the 10year yield to top 1.5.

The move of the U.S. longterm bond yields is now the centre of the attention for stock investors, said Yoshihiro Takeshige, general manager at the investment management department of Asahi Life Asset Management.

If the move of yields will become out of control, Japans market could be dragged lower, led by declines in U.S. technology shares.

Fast Retailing the operator of Uniqlo clothing stores fell 3.39 and was the biggest drag on the Nikkei. Staffing agency Recruit Holdings declined 6.34.

Chiprelated stocks, which have driven this years rally, were also lower. Tokyo Electron fell 2.47, while Advantest and Fanuc lost 1.27 and 0.94, respectively.

Toshiba surged 6.06 as Mizuho Financial Group built a 5.07 stake in the energy and infrastructure services…

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