TOKYO, Dec. 1 (Xinhua) -- Tokyo stocks plunged sharply on Monday, weighed down by a stronger yen and rising long-term yields amid growing speculation that the Bank of Japan (BOJ) could raise interest rates this month.
The 225-issue Nikkei Stock Average ended down 950.63 points, or 1.89 percent, from Friday at 49,303.28. The broader Topix index finished 40.11 points, or 1.19 percent, lower at 3,338.33.
The yield on the benchmark 10-year Japanese government bond hit 1.87 percent, its highest level since June 2008, after BOJ Governor Kazuo Ueda said the central bank will weigh the pros and cons of raising its policy rate when its board meets later this month.
The U.S. dollar briefly weakened to the lower 155 yen range in Tokyo after Ueda's speech fueled speculation that the BOJ is moving closer to increasing interest rates.
Stocks opened slightly higher after Wall Street advances late last week amid expectations that the U.S. Federal Reserve will cut its benchmark interest rate next week to bolster the world's largest economy.
However, gains were soon erased and slipped into negative territory, dragged down by investors locking in gains after the benchmark Nikkei rose more than 1,600 points over the past four trading days.
The Nikkei index briefly lost over 2 percent, or more than 1,000 points, pressured further by the yen's appreciation that weighed on exporter shares and growing concern over higher borrowing costs due to rising long-term yields, brokers said. ■
