The Nikkei 225 Index Closes 1.33% Lower

The Nikkei 225 Index fell 807 points or 1.33 percent on Wednesday to close at 59744 points. Leading the losses are Okuma (-9.32%), Fujikura (-8.54%) and Mitsui Engineering & Shipbuilding (-6.55%).

Japan’s Nikkei 225 fell 1.23% to close at 59,804 on Wednesday, while the broader TOPIX declined 1.53% to 3,792, 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 SoftBank Group (-6%), Fujikura (-8.5%), Tokyo Electron (-2.3%) and Lasertec (-1.1%).

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%).