TOKYO, Nov. 13 (Xinhua) -- Tokyo stocks continued to slide on Wednesday as broad selling followed declines seen in the U.S. and European markets, with many investors viewing the recent rally as having reached its peak.

The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, declined 654.43 points, or 1.66 percent, to close at 38,721.66.

During the afternoon session, Nikkei's trading saw expanded losses as foreign hedge funds and short-term traders, who had driven much of the recent rally, shifted to selling.

Higher U.S. long-term interest rates strengthened expectations of rising yields, prompting relative valuation concerns and additional stock selling.

Meanwhile, in Tokyo's foreign exchange market, the yen weakened to the 155-yen level against the dollar, supporting selective buying in export-related stocks, leading the Nikkei to experience brief upward movement.

The Tokyo Stock Price Index (TOPIX) closed 33.10 points, or 1.21 percent, lower at 2,708.42.

Of the listed stocks on the top-tier Prime Market, 1,012 declined, 587 rose, and 46 remained unchanged. Enditem

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