Tokyo stocks fell Monday, weighed down by caution over the performance of Japanese firms amid the midterm earnings reporting season and economic uncertainty stoked by intensifying conflict in the Israel-Hamas war.

The 225-issue Nikkei Stock Average ended down 294.73 points, or 0.95 percent, from Friday at 30,696.96. The broader Topix index finished 23.41 points, or 1.04 percent, lower at 2,231.24.

On the top-tier Prime Market, decliners were led by transportation equipment, pharmaceutical and textile and apparel issues.

The yield on the benchmark 10-year Japanese government hit a 10-year high of 0.890 percent amid speculation that the Bank of Japan could tweak its policy to allow interest rates to climb further after its policy meeting through Tuesday.

The U.S. dollar mostly stayed in the upper 149 yen range in Tokyo, with many participants adopting a wait-and-see stance ahead of the outcome of the BOJ meeting.

Tokyo stocks were lower throughout the day, as investor sentiment was hurt by a number of Japanese companies revising down their earnings projections, including Hino Motors Ltd. and Sumitomo Chemical Co., analysts said.

"Investors were wary that upcoming earnings reports may disappoint them, given that the latest releases appeared lackluster," said Koichi Fujishiro, senior economist at the Dai-ichi Life Research Institute.

Hino Motors plummeted 99.9 yen, or 18.7 percent, to 435.2 yen after saying Friday it cut its earnings projections for the current business year through March due to slowing overseas sales and a penalty linked to an engine data falsification scandal.

Sumitomo Chemical slid 20.8 yen, or 5.2 percent, to 378.8 yen after slashing its earnings outlook for the fiscal first half ended September, citing weakening demand for petrochemicals amid a slowdown in the global economy.

The latest developments in the Middle East also drove selling after the Israeli prime minister said the country's war with Palestinian militant group Hamas has entered a new phase, with reports of an expansion in land and air attacks on Gaza raising fears of a wider regional conflict that could affect the global economy, analysts said.

Other automakers were sold after the dollar weakened to below the 150 yen threshold late last week. A strengthening of the yen hurts exporters as their overseas profits are worth less when repatriated.

Toyota Motor was down 64.5 yen, or 2.4 percent, to 2,574 yen, while Honda Motor fell 67.5 yen, or 4.2 percent, to 1,527.5 yen.

==Kyodo

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