Japanese Shares Fall on Rising Yields

The Nikkei 225 Index fell 0.8% to below 65,500, while the broader Topix Index dropped 1.4% to 4,055 on Tuesday, extending losses from the previous session as global bond yields climbed higher amid expectations that energy-driven inflation will prompt tighter monetary policy. Japanese shares also followed overnight declines on Wall Street as the US 10-year yield rose above 5.2%, while the 30-year yield stood at 5.55%. Meanwhile, oil prices resumed their advance after Iranian officials reportedly expressed doubts about reaching a deal before the US midterm elections in November, following President Donald Trump’s rejection of Tehran’s latest proposal. Notable declines were recorded among heavyweight technology, financial and consumer stocks, including SoftBank Group (-2.1%), Mitsubishi UFJ (-2.5%), and Toyota Motor (-2.7%).