Nikkei Falls as Bond Yields, Oil Prices Weigh on Tokyo

Tokyo stocks fell on October 2, as investors took profits after the previous day's sharp rally and turned cautious ahead of U.S. employment data.

The Nikkei 225 closed at 68,309, down 647 points, while the broader TOPIX fell 40.98 points to 4,091.00.

The decline was not limited to high-priced index names, with technology, autos, pharmaceuticals, banks, and insurers all affected by higher global bond yields and renewed concern over energy prices.

Investors were watching whether the September jobs report would strengthen expectations for another Federal Reserve rate hike and push U.S. yields even higher.