TOKYO, March 8 (Xinhua) -- Tokyo stocks closed lower Monday, reversing earlier gains, as despite hopes for the recovery of the U.S. economy after the passage of a hefty stimulus package, concerns grew it would result in higher bond yields.
The 225-issue Nikkei Stock Average dropped 121.07 points, or 0.42 percent, from Friday to close the day at 28,743.25.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 2.60 points, or 0.14 percent, to finish at 1,893.58.
Trading got off to a bright start after U.S. government jobs data showed a better-than-expected 379,000 jobs added in February.
The Nikkei's losing streak, however, was extended for a fourth straight day, with local brokers saying that the 1.9-trillion-U.S.-dollar stimulus package passing the Senate before final approval in the House of Representatives, on the one hand bolstered confidence in the recovery of the pandemic-ravaged economy, yet on the other, stoked concerns over new bond issuance to finance the package which will send yields even higher.
"Investors were more worried about fiscal deterioration in the United States due to increased government debt if the bill is passed into law," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.
"Concerns about possibly higher U.S. yields pushed down U.S. technology-heavy Nasdaq futures and weighed on the Tokyo market," Miura added.
Other analysts concurred, with Chibagin Asset Management's Yoshihiro Okumura quoted as saying "concerns over higher interest rates in the U.S. continued weighing on the market."
He added that, "Today's decline was largely seen as part of the market's adjustment following the recent surge."
By the close of play, electric appliance, rubber product and service-oriented issues comprised those that declined the most.
Among technology issues losing ground, Taiyo Yuden lost 0.9 percent, while Tokyo Electron fell 1.1 percent.
Screen Holdings retreated 1.4 percent, while Sony ended the day 1.7 percent lower.
Takeda Pharmaceutical marked a bright spot on the market, however, by climbing 3.9 percent, after the drugmaker filed a request with Japan's health ministry on Friday for approval to provide U.S. biotechnology firm Moderna Inc.'s COVID-19 vaccine.
Issues that rose outpaced those that fell by 1,211 to 889 on the First Section, while 94 ended the day unchanged.
On the main section on Monday, 1,511.02 million shares changed hands, rising from Friday's volume of 1,430.43 million shares.
The turnover on the first trading day off the week came to 2,986.260 billion yen (27.521 billion U.S. dollars). Enditem