Japan stocks fall as bond yields and oil prices rise
Nikkei 225 fell 2.5% to below 64,600 and Topix declined 1.6% to 4,115. Equities slid as global bond yields surged and oil rose for a third session on US-Iran tensions and inflation risk.
The Nikkei 225 Index dropped 2.5% to below 64,600 while the broader Topix Index fell 1.6% to 4,115 on Wednesday, with the Nikkei hitting four-week lows as surging global bond yields and oil prices weighed heavily on equities.
Oil prices climbed for a third consecutive session amid escalating hostilities between the US and Iran, heightening inflationary risks and driving global bond yields higher.
Japan’s 10-year government bond yield reached 3% for the first time since 1996, also supported by growing expectations for a Bank of Japan interest rate hike this month.
Tech and AI-related stocks led the decline, with notable losses from Kioxia Holdings (-1.1%), Advantest (-2.3%), Fujikura (-1.4%), Tokyo Electron (-4.6%) and SoftBank Group (-4.6%).
Financial, consumer and industrial stocks also recorded sharp declines.