The Nikkei 225 Index slipped 0.4% to below 69,000 on Tuesday, partially reversing the previous session’s gains as global bond yields climbed on persistent worries over inflation and increasing government expenditures. Japan’s benchmark 10-year government bond yield rose to around 2.95%, its highest level in about 30 years, with mounting fiscal concerns and growing expectations of an imminent Bank of Japan interest rate hike weighing on market sentiment.
Losses were led by technology and consumer names, including Tokyo Electron (-2.9%), Advantest (-1.7%), Lasertec (-1.6%), Fast Retailing (-1.3%) and Nintendo (-2.4%).
In corporate developments, Nvidia agreed to invest up to $105 billion to support SB Energy, a SoftBank Group subsidiary that is developing a large-scale data center project in Ohio for OpenAI.