FX.co ★ Japanese Shares Struggle as Bond Yields, Oil Prices Weigh

The Nikkei 225 Index slipped 0.15% to close at 66,215 on Tuesday, while the broader Topix Index advanced 0.62% to 4,182 in mixed trading. Japanese equities struggled to gain clear direction as rising global bond yields and higher oil prices intensified concerns over inflation and the prospect of further interest rate hikes.

Japan’s 10-year government bond yield climbed to around 3%, its highest level since 1996, amid mounting expectations that the Bank of Japan will raise interest rates this month to address yen weakness and import-driven inflation. At the same time, oil prices rose for a second consecutive session, as renewed conflict in the Middle East added to market uncertainty.

On the corporate front, notable declines were seen in major index constituents such as Fujikura (-3.7%), Advantest (-0.9%), and Tokyo Electron (-2.6%). In contrast, Kioxia Holdings (2%), Taiyo Yuden (1.1%), and SoftBank Group (1.2%) registered gains.