Asian financial markets were treading carefully on Tuesday in holiday-thinned trading, but oil pushed higher with U.S and Iran nuclear negotiations in Geneva due to begin later in the day.
The Nikkei 225 lost 239.92 points, or 0.4%, to 56,566.99.
Ten-year Treasury yields slipped one basis point to 4.044% on Tuesday, hitting the lowest since early December. Japan’s five-year yield fell two basis points to 1.65%, its lowest since February 2.
Japan’s weakening economy remained in focus on Tuesday, one day after much softer than expected GDP numbers.
The country on Monday reported its economy grew an annualized 0.2% in the fourth quarter, far below the 1.6% gain forecast as government spending dragged on activity. On Tuesday, The Japanese yen strengthened 0.15% against the greenback to 153.28 per dollar.
The weak figures highlight the challenges ahead for Prime Minister Sanae Takaichi and should support her push for more aggressive fiscal stimulus, economists said.
The BOJ next meets on rates in March, with traders forecasting only a slim chance for a hike. Economists polled by Reuters last month expected the central bank to wait until July before tightening policy again
Australia’s central bank said on Tuesday it had concluded inflation would stay stubbornly high if it had not hiked interest rates as it did this month, and was not yet sure if further tightening would be necessary.
Gold was down 0.85% at $4949.5 per ounce as a higher dollar on Monday made greenback-priced bullion more expensive for holders of other currencies. Spot silver was 2% lower.
In other markets
In Taiwan, Hong Kong, Shanghai, Korea, Taipei and Singapore, markets were shuttered for holiday.
In Australia, the ASX gained 21.78 points, or 0.2%, to 8,958.88.
In New Zealand, the NZX 50 surrendered 86.30 points, or 0.7%, to 13,031.62.
