Tokyo stocks erased early gains to extend their losing streak Tuesday, with buying sentiment chilled by drops in Chinese shares and U.S. index futures.

The 225-issue Nikkei average fell 178.23 points, or 0.61%, to close at 28,995.92, down for the third consecutive session. On Monday, the key index tumbled 617.90 points.

The Topix index of all first section issues ended down 18.70 points, or 0.94%, at 1,971.48, after losing 22.03 points the previous trading day.

The Tokyo market opened higher following gains in all three major U.S. price gauges, especially the tech-heavy Nasdaq composite index’s steep rise, on Monday thanks to a drop in long-term Treasury yields.

But investors moved to lock in gains from the initial spurt in response to bleak performances of Chinese stocks and U.S. Dow Jones Industrial Average futures, sending both the Nikkei and Topix indexes into negative terrain in the afternoon, brokers said.

Uncertainties over the direction of U.S. long-term interest rates also dampened sentiment.

Maki Sawada, strategist at Nomura Securities Co., said the market was weighed down by profit-taking especially directed at shippings, steels and other stocks that had steadily climbed in the recent rally.

“Dow futures went down as a media report about U.S. President Joe Biden’s $3 trillion fiscal spending plan sparked speculation about massive Treasury issuance ahead,” said Hirohumi Yamamoto, strategist at Toyo Securities Co.

Sawada pointed out that behind the stepped-up profit-taking was investors’ worries about growing uncertainties over whether U.S. interest rates will keep going down or resume climbing.

On the TSE first section, decliners overwhelmed gainers 1,748 to 391, while 55 issues were unchanged. Volume fell to 1.371 billion shares from Monday’s 1.384 billion shares.

Shippings Kawasaki Kisen and Mitsui O.S.K. Lines dived 7.21% and 5.82%, respectively.

Cybermall operator Rakuten plunged 6.69% on a news report that it may face a U.S. probe linked to Chinese technology giant Tencent.

Banking stocks were hit hard by the U.S. interest rate decline.

On the other hand, tech shares such as chipmaking gear-maker Tokyo Electron and medical information service provider M3 benefited from the rate drop.

TSE operator JPX jumped 2.78% after revising up its earnings forecasts the previous day.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average sank 120 points to 28,810.

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