TOKYO: Japan’s Nikkei share average ended flat on Tuesday in lacklustre trading, a day after a sharp selloff sparked by hints that the Bank of Japan could raise interest rates as early as this month.
The Nikkei finished the session at 49,303.45, from 49,303.28 on Monday when it tumbled 1.9 percent to break below the psychological barrier of 50,000.
The broader Topix added less than 0.1 percent to 3,341.06 following a 1.2 percent slide in the previous session.
BOJ Governor Kazuo Ueda said in a speech on Monday that policymakers would consider the “pros and cons” of a December rate hike, sending the strongest signal yet of near-term policy tightening.
This marked a hawkish shift in tone by Ueda, who had generally been a voice of caution among the bank’s policy board members.
Japanese government bond yields climbed to fresh multi-decade highs on Tuesday, including a record peak for the 30-year bond, extending a rise from Monday, when the debt market witnessed its heaviest selloff in four months.
“Ueda’s message changed, and that had a big impact on the stock market,” said Kenji Abe, an equities strategist at Daiwa Securities.
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