TOKYO, Dec. 2 (Xinhua) -- Tokyo stocks ended flat Tuesday as bargain hunters stepped in after the previous day's steep sell-off, but their buying was largely countered by renewed worries over rising borrowing costs amid speculation that the Bank of Japan (BOJ) may lift interest rates this month.
The 225-issue Nikkei Stock Average closed up 0.17 points from Monday at 49,303.45. The broader Topix index finished 2.73 points, or 0.08 percent, higher at 3,341.06.
On the top-tier Prime Market, the main gainers were bank and nonferrous metal issues, while mining and electric power and gas shares were notable decliners.
The yield on the benchmark 10-year Japanese government bond briefly rose to 1.88 percent, its highest level since June 2008, after BOJ Governor Kazuo Ueda on Monday signaled the possibility of an interest rate hike at the bank's upcoming policy meeting.
The U.S. dollar traded mostly in the upper 155 yen range in Tokyo as investors sold the yen to adjust positions after the currency's appreciation on Monday, dealers said.
Stocks mostly remained in positive territory after the benchmark Nikkei closed down nearly 1,000 points on Monday, dragged down by a stronger yen and rising long-term yields.
While higher long-term interest rates prompted buying of bank shares on hopes for improved profits, the continued rise in yields weighed on the overall market, brokers said.
Gains were also limited by overnight losses on Wall Street, where weaker-than-expected U.S. manufacturing data for November dampened investor sentiment. ■