Japanese Shares Fall as High Yields, Middle East Tensions Weigh

2026-08-24 00:52 By Judith Sib-at 1 min. read

The Nikkei 225 Index fell 0.2% to below 65,900 on Monday, extending losses from the previous session as traders remained cautious amid elevated global bond yields and persistent tensions in the Middle East.

Global yields remained near multi-year highs as the US Treasury’s surprise bond buyback announcement last week failed to ease concerns over inflation and rising government debt.

Geopolitical risks also remained in focus, with the US expected to announce new sanctions on Iran later in the day, although Iranian leaders said the measures would fail to weaken Tehran.

Investors are also awaiting Nvidia’s earnings report this week for clues about whether the recent AI-driven rally in equities can be sustained.

Chip and AI-linked stocks led the losses, including Kioxia Holdings (-0.6%), Advantest (-1.1%), Fujikura (-3.1%), SoftBank Group (-1.4%), and Furukawa Electric (-1.7%).

Financial and consumer stocks also traded lower, with Mitsubishi UFJ falling 0.3% and Toyota Motor losing 0.6%.



News Stream
Japanese Shares Fall as High Yields, Middle East Tensions Weigh
The Nikkei 225 Index fell 0.2% to below 65,900 on Monday, extending losses from the previous session as traders remained cautious amid elevated global bond yields and persistent tensions in the Middle East. Global yields remained near multi-year highs as the US Treasury’s surprise bond buyback announcement last week failed to ease concerns over inflation and rising government debt. Geopolitical risks also remained in focus, with the US expected to announce new sanctions on Iran later in the day, although Iranian leaders said the measures would fail to weaken Tehran. Investors are also awaiting Nvidia’s earnings report this week for clues about whether the recent AI-driven rally in equities can be sustained. Chip and AI-linked stocks led the losses, including Kioxia Holdings (-0.6%), Advantest (-1.1%), Fujikura (-3.1%), SoftBank Group (-1.4%), and Furukawa Electric (-1.7%). Financial and consumer stocks also traded lower, with Mitsubishi UFJ falling 0.3% and Toyota Motor losing 0.6%.
2026-08-24
The Nikkei 225 Index Closes 0.66% Lower
The Nikkei 225 Index dropped 440 points or 0.66 percent on Friday to close at 65777 points. Losses were led by Trend Micro (-4.40%), Japan Steel Works (-4.36%) and Taiyo Yuden (-4.27%). Offsetting the fall, top gainers were Sumitomo Chemical (6.55%), Kawasaki Kisen (6.52%) and Nippon Yusen (4.90%).
2026-08-21
Japanese Shares Fall as Global Yields Rebound
The Nikkei 225 Index fell 0.3% to close at 66,016 on Friday, giving back some gains from the previous session as global bond yields rebounded amid concerns that US efforts to curb borrowing costs through debt buybacks may provide only a temporary solution. The 10-year US Treasury yield traded around 4.7%, erasing its losses from earlier in the week, while Japan’s benchmark 10-year yield ended a two-day decline. Meanwhile, data showed Japan’s inflation rate accelerated for the second consecutive month, strengthening the case for a Bank of Japan interest rate hike in the near term. BOJ Governor Kazuo Ueda previously indicated that authorities could begin normalizing policy at a faster pace. Technology stocks led the declines, with notable losses from Fujikura (-1.1%), Taiyo Yuden (-3.4%) and SoftBank Group (-2.5%). The Nikkei 225 Index dropped 3.93% for the week, breaking a two-week winning streak.
2026-08-21