The Nikkei 225 Index Closes 0.65% Lower

Japan’s Nikkei 225 fell 1.6% to around 59,600 on Wednesday, while the broader TOPIX declined 1.3% to 3,800, with both benchmarks hitting multi-week lows as they tracked overnight losses on Wall Street. The selloff came as global bond yields climbed sharply amid mounting inflation concerns tied to the Iran war. Japan’s benchmark 10-year government bond yield also surged to 2.8%, its highest level since September 1996, after stronger-than-expected economic growth data reinforced expectations for further monetary tightening. Markets are increasingly pricing in a potential interest rate hike from the Bank of Japan as early as next month following hawkish remarks from policymakers. Investors are also awaiting Japan’s latest trade and inflation data for additional clues on the economy’s strength. Technology and AI-related shares led the decline, with steep losses from Kioxia, SoftBank Group, Fujikura, Tokyo Electron, and Lasertec.

The Nikkei 225 Index decreased 394 points or 0.65 percent on Tuesday to close at 60422 points. The decline was led by Fujikura (-16.43%), Furukawa Electric (-8.84%) and Dowa (-6.88%). On the upside, the strongest performers were Konami (8.57%), Recruit Holdings (8.23%) and Bandai Namco Holdings (8.17%).

The Nikkei 225 Index fell 0.44% to close at 60,550, while the broader Topix Index gained 0.63% to 3,851 on Tuesday, with Japanese shares struggling for clear direction even after stronger-than-expected economic growth data improved the corporate outlook. Japan’s economy expanded 0.5% QoQ in the first quarter, accelerating from 0.2% in Q4 and exceeding market expectations of 0.4%. Still, the outlook remains uncertain amid ongoing Middle East tensions, with the broader economic effects of the conflict yet to be fully reflected in the data. Investor was somewhat support by hopes that the US and Iran may return to negotiations after President Donald Trump said he halted a planned strike on Iran for Tuesday following appeals from Gulf allies. Financial stocks advanced, with Mitsubishi UFJ rising 3.8%, Sumitomo Mitsui jumping 3.7%, and Mizuho Financial climbing 5.5%. In contrast, tech stocks mostly declined, including Kioxia (-3.3%), Fujikura (-17%) and SoftBank Group (-4.2%).