FX.co ★ Japanese Shares Drop on Rallying Bond Yields, Oil Prices

The Nikkei 225 Index fell 2.5% to below 64,600 and the broader Topix Index lost 1.6% to 4,115 on Wednesday, with the Nikkei sliding to a four-week low as surging global bond yields and higher oil prices pressured equities. Oil extended gains for a third straight session amid escalating tensions between the US and Iran, intensifying inflation concerns and pushing global bond yields higher. Japan’s 10-year government bond yield rose to 3% for the first time since 1996, boosted further by mounting expectations that the Bank of Japan will raise interest rates this month. Tech and AI-related shares led the selloff, with notable declines in 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 posted steep losses.