The Nikkei 225 Index fell 2.85% on Wednesday to close at 64,325, its lowest level in four weeks, as surging global bond yields and higher oil prices weighed heavily on equities. Oil prices rose for a third straight session amid escalating tensions between the US and Iran, stoking inflation concerns and driving global bond yields higher. Japan’s 10-year government bond yield climbed to 3% for the first time since 1996, supported by growing expectations of an interest rate hike by the Bank of Japan. Governor Kazuo Ueda said this week that policymakers must pay closer attention to upside inflation risks when setting monetary policy, signaling that a rate increase is likely later this month. Tech and AI-related shares led the downturn, with notable losses in Advantest (-2.5%), Fujikura (-3.9%), Taiyo Yuden (-4.6%), Tokyo Electron (-3.4%), and SoftBank Group (-6.4%). Financial, consumer, and industrial stocks also posted steep declines.