The U.S. dollar briefly dropped to the lower 139 yen zone in late Tokyo trading on Tuesday in line with a fall in long-term U.S. Treasury yields during after-hours trading and as investors sold the greenback against all major currencies.

Earlier in the day, the dollar rose to the mid-140 yen range at one point but fell over 1 yen in the afternoon as the London market opened, dealers said.

"U.S. yields fell sharply as trading in Europe began, and this appears to have led to the dollar's losing ground" against major currencies, said Takuya Kanda, senior researcher at the Gaitame.com Research Institute.

Long-term U.S. Treasury yields rose slightly overnight after tumbling last week on expectations that the Federal Reserve will slow its pace of rate increases.

At 5 p.m., the dollar fetched 139.33-35 yen compared with 139.87-97 yen in New York and 139.49-52 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.0407-0408 and 145.01-05 yen against $1.0321-0331 and 144.39-49 yen in New York, and $1.0327-0328 and 144.07-11 yen in Tokyo late Monday afternoon.

The yield on the bellwether 10-year Japanese government bond was unchanged from Monday's close at 0.240 percent.

On the stock market, Tokyo stocks ended slightly higher on firm bank issues that revised upward dividend payments forecasts, with gains limited by a sell-off of Recruit Holdings on weaker-than-expected earnings.

The 225-issue Nikkei Stock Average ended up 26.70 points, or 0.10 percent, from Monday at 27,990.17. The broader Topix index finished 7.32 points, or 0.37 percent, higher at 1,964.22.

On the top-tier Prime Market, gainers were led by bank, pharmaceutical, and nonferrous metal issues.

Bank shares drew buying after some major banking groups, including Sumitomo Mitsui Financial Group Inc., upgraded the previous day's annual dividend payment projections in line with favorable earnings results, analysts said.

"Bank issues lifted the market in the absence of major trading cues," said Shingo Ide, chief equity strategist at the NLI Research Institute, adding that a rise in other Asian markets also supported Japanese stocks.

But their gains were limited as Recruit Holdings plummeted 327 yen, or 6.7 percent, to 4,573 yen after the company reported Monday its net profit grew in the April-September period from a year earlier but failed to meet market expectations, brokers said.

Meanwhile, the stock market was little affected by weaker-than-expected Japanese gross domestic product data, brokers said.

Among bank issues, Sumitomo Mitsui Financial Group climbed 179 yen, or 4.2 percent, to 4,468 yen, while Mizuho Financial Group gained 18.0 yen, or 1.1 percent, to 1,615.5 yen.

Among Prime Market issues, advancing issues outnumbered decliners 1,091 to 678, while 67 ended unchanged.

Shionogi advanced 136 yen, or 2.0 percent, to 6,838 yen after the health ministry said Monday that it will start deliberation next week on whether to grant an emergency approval to the drugmaker's COVID-19 oral medicine.

Trading volume on the Prime Market fell to 1,211.30 million shares from Monday's 1,460.35 million.

==Kyodo

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