Japanese Shares Fall on Inflation Worries

The Nikkei 225 Index fell 0.6% to close at 65,481, while the broader Topix Index dropped 1.72% to 4,041 on Tuesday, extending losses from the previous session as global bond yields remain at elevated levels amid expectations that energy-driven inflation could lead to tighter monetary policy. Oil prices resumed their upward move after Iranian officials reportedly questioned the prospects of reaching an agreement before the US midterm elections in November, following President Donald Trump’s rejection of Tehran’s latest proposal. Japanese equities also came under pressure as more than half of Topix constituents traded ex-dividend. Notable losses were seen among heavyweight technology, financial, and consumer stocks, including SoftBank Group (-3.4%), Mitsubishi UFJ (-3.5%), Sumitomo Mitsui (-4%), Toyota Motor (-3.5%), and Nintendo (-1.3%).