Japan Stocks Fall on ETF Plan; Bond Yields Rise on Rate Bets

Japan’s stocks dropped after the central bank said that it will begin selling its holdings of exchange-traded funds. Bonds fell as two dissenting voices on the board increased expectations of an interest rate hike next month.

The Nikkei 225 Stock Average earlier fell as much as 1.8%, while the broader Topix dropped as much as 1.1% in Tokyo. The Bank of Japan said at the end of a two-day gathering it will sell about ¥620 billion of ETFs per year by market value. It also kept rates steady.