TOKYO, Aug 22 (Reuters) - Japanese shares fell on Monday,
dragged down by heavyweight technology companies, after a rise
in U.S. bond yields sent Wall Street lower last week.
By 0206 GMT, the Nikkei share average was down 0.5%
to 28,792.16. The index fell as much as 1.2% earlier in the
session eased their losses after China cut its benchmark lending
The broader Topix edged lower 0.2% 1,990.45.
"Japanese market tracked Wall Street's declines on the
weekend, but moreover investors were concerned about inflation
in Europe, which is higher than expected," said Shuji Hosoi,
senior strategist at Daiwa Securities.
"The yields rose because of that and that spurred concerns
about economic slowdown. Today Japanese manufacturers were hit
by these worries."
Rise in U.S. yields and slowdown concerns due to fears of
policy tightening on inflationary pressures in Europe, including
the UK, hit Japanese companies who are mainly exporters, he
U.S. stocks fell on Friday in a broad selloff led by
megacaps as U.S. bond yields rose, with the S&P 500 posting
losses for the week after four straight weeks of gains.
Amazon.com, Apple <AAPL.O and Microsoft
all fell and were the biggest drags on the S&P 500 and Nasdaq.
Higher rates tend to be a negative for tech and growth stocks,
whose valuations rely more heavily on future cash flows.
Chip-making equipment maker Tokyo Electron was the
biggest drag on the Nikkei, dropping 2.17%. Robot maker Fanuc
lost 1.31% and silicon wafer maker Shin-Etsu Chemical
Energy related shares rose. Inpex Corp rose 3.48%
and was the top gainer on the Nikkei, followed by Idemitsu Kosan
, gaining 2.53%.
Drugmaker Daiichi Sankyo rose 2.47%.
There were 83 advancers on the Nikkei index against 135
(Reporting by Junko Fujita; Editing by Rashmi Aich)