TOKYO (Kyodo) -- Tokyo stocks fell Friday for the third straight day, as Nikkei heavyweight Fast Retailing was sold after the operator of the Uniqlo clothing chain reported sluggish earnings in China.

The 225-issue Nikkei Stock Average ended down 414.69 points, or 1.05 percent, from Thursday at 39,190.40. The broader Topix index finished 21.80 points, or 0.80 percent, lower at 2,714.12.

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

In the bond market, the yield on the benchmark 10-year Japanese government bond hit 1.200 percent in after-hour trading, its highest level since May 2011, tracking recent increases in U.S. Treasury yields.

In regular trading, the key barometer of long-term interest rates ended at 1.195 percent, up 0.025 percentage point from Thursday's close, lifted also by a growing speculation that the Bank of Japan will raise rates soon.

The U.S. dollar firmed slightly in the lower 158 yen range in Tokyo ahead of the release of U.S. employment data later in the day.

At 5 p.m., the dollar fetched 158.38-40 yen compared with 158.03-13 yen in New York and 158.18-20 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.0296-0298 and 163.07-11 yen against $1.0294-0304 and 162.83-93 yen in New York and $1.0290-0292 and 162.77-81 yen in Tokyo late Thursday afternoon.

The stock market was dragged down by heavy selling of Fast Retailing after the company reported sharp profit declines in China in the September-November period last year. The retailer ended the day down 6.5 percent at 48,700 yen.

Although the company logged record-high sales and net profit for the period in its group earnings, they were below expectations, brokers said.

Stocks were also pressured by selling on caution over the closely watched U.S. employment data, to be released before the Federal Reserve holds its policy meeting later this month.

"Investors were wary of possible declines in U.S. shares if the outcome turns out to be stronger than projected and leads to higher interest rates," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.