FX.co ★ Japanese Shares Start Week Lower

The Nikkei 225 Index slipped 0.2% to below 65,900 on Monday, extending the previous session’s decline as investors stayed cautious amid elevated global bond yields and ongoing tensions in the Middle East. Yields worldwide hovered near multi-year highs, with last week’s unexpected US Treasury bond buyback announcement doing little to ease concerns over persistent inflation and mounting government debt. Geopolitical risks also remained in focus, with the US expected to unveil new sanctions on Iran later in the day, though Iranian officials insisted the measures would not weaken Tehran. Investors are additionally looking ahead to Nvidia’s upcoming earnings and guidance for signals on whether the AI-driven equity rally can continue. Technology and AI-related stocks were among the notable laggards, with Kioxia Holdings down 0.6%, Advantest off 1.1%, Fujikura losing 3.1%, SoftBank Group declining 1.4%, and Furukawa Electric falling 1.7%.