Japan Nikkei tumbles as global inflation fears

Japan share market finished session deeply in red on Friday, 26 February 2021, due to heavy selloff across the board on following an overnight tumble on Wall Street. and worried that rising bond yields in recent weeks could hurt high-growth companies reliant on easy borrowing.

At closing bell, the 225-issue Nikkei Stock Average tumbled 1202.26 points, or 3.99%, to 28,966.01. The broader Topix index of all First Section issues on the Tokyo Stock Exchange tanked 61.4 points, or 3.21%, to 1,864.49.

Tracking U.S. long-term interest rates hitting a one-year high overnight, the yield on the benchmark 10-year Japanese government bond briefly rose to 0.175%, its highest levels since Jan. 29, 2016, when the Bank of Japan decided to adopt a negative interest rate.

Stock prices around the world have been lifted largely by central banks implementing massive monetary easing policies, such as keeping interest rates to near zero, to support economies battered by the coronavirus pandemic. Higher bond yields make riskier stocks, such as high-tech shares that have surged largely amid the pandemic, less attractive.

ECONOMIC NEWS: Japan Industrial Production Up 4.2% On Month In January-Japan industrial output was up a seasonally adjusted 4.2% on month in January, the Ministry of Economy, Trade and Industry said on Friday, following the 1% decline in December. On a yearly basis, industrial production dropped 5.3% after slipping 2.6% in the previous month. Upon the release of the data, the METI upgraded its assessment of industrial production, saying that it is now picking up.

Japan Retail Sales Fall 0.5% In January-Japan value of retail sales was down a seasonally adjusted 0.5% on month in January, the Ministry of Economy, Trade and Industry said on Friday, coming in at 12.097 trillion yen, following the 0.8% decline in December. On a yearly basis, retail sales dropped 2.4% after the 0.2% dip in the previous month.

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