The Nikkei 225 Index Closes 0.29% Higher

The Nikkei 225 Index fell 0.15% to close at 66,215, while the broader Topix Index rose 0.62% to 4,182 in mixed trade on Tuesday, with Japanese shares struggling for momentum as rising global bond yields and higher oil prices heightened concerns over inflation and interest rate hikes. Japan’s 10-year government bond yield climbed to around 3%, its highest level since 1996, amid growing expectations that the Bank of Japan will raise rates this month to curb yen weakness and import-driven inflation. Meanwhile, oil prices advanced for a second straight session as renewed conflict in the Middle East fueled uncertainty. Notable losses came from index heavyweights Fujikura (-3.7%), Advantest (-0.9%) and Tokyo Electron (-2.6%), while Kioxia Holdings (2%), Taiyo Yuden (1.1%) and SoftBank Group (1.2%) posted gains.

The Nikkei 225 Index gained 193 points or 0.29 percent on Tuesday to close at 66505 points. Gains were led by Sumitomo Chemical (7.50%), Tokyo Electric Power (6.04%) and Mitsui Chemicals (5.67%). Biggest losers were Furukawa Electric (-4.08%), Fujikura (-3.69%) and Mitsui Engineering & Shipbuilding (-3.07%).

Asian equity markets declined on Tuesday as oil prices climbed higher amid renewed hostilities in the Middle East, stoking inflation concerns and strengthening expectations for near-term interest rate hikes. US forces struck an island in the Strait of Hormuz, while Iran responded with attacks on the UAE and Jordan, marking a return to combat between the US and Iran after roughly a month. Global bond yields rose to fresh highs on growing inflation concerns, with Japan’s benchmark 10-year yield reaching a fresh 30-year high, adding to downward pressure on equities. Stocks in Australia, Japan, South Korea, China and Hong Kong all fell, with technology and artificial intelligence-related companies leading the losses.