Japanese Shares Drop on Rallying Bond Yields, Oil Prices

2026-09-02 00:39 By Jam Kaimo Samonte 1 min. read

The Nikkei 225 Index dropped 2.5% to below 64,600 while the broader Topix Index fell 1.6% to 4,115 on Wednesday, with the Nikkei hitting four-week lows as surging global bond yields and oil prices weighed heavily on equities.

Oil prices climbed for a third consecutive session amid escalating hostilities between the US and Iran, heightening inflationary risks and driving global bond yields higher.

Japan’s 10-year government bond yield reached 3% for the first time since 1996, also supported by growing expectations for a Bank of Japan interest rate hike this month.

Tech and AI-related stocks led the decline, with notable losses from Kioxia Holdings (-1.1%), Advantest (-2.3%), Fujikura (-1.4%), Tokyo Electron (-4.6%) and SoftBank Group (-4.6%).

Financial, consumer and industrial stocks also recorded sharp declines.



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Asian Stocks Drop on Rallying Oil Prices
Asian equity markets fell sharply on Wednesday, tracking Wall Street lower as a surge oil prices heightened concerns over inflation and imminent interest rate hikes. Global bond yields also rallied on mounting inflation worries, expectations of monetary tightening and worsening fiscal conditions, pressuring equities further. Tech-heavy indexes in South Korea and Japan dropped about 3%, leading regional declines. Shares in Australia, China and Hong Kong also slumped.
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The Nikkei 225 Index dropped 2.5% to below 64,600 while the broader Topix Index fell 1.6% to 4,115 on Wednesday, with the Nikkei hitting four-week lows as surging global bond yields and oil prices weighed heavily on equities. Oil prices climbed for a third consecutive session amid escalating hostilities between the US and Iran, heightening inflationary risks and driving global bond yields higher. Japan’s 10-year government bond yield reached 3% for the first time since 1996, also supported by growing expectations for a Bank of Japan interest rate hike this month. Tech and AI-related stocks led the decline, with notable losses from Kioxia Holdings (-1.1%), Advantest (-2.3%), Fujikura (-1.4%), Tokyo Electron (-4.6%) and SoftBank Group (-4.6%). Financial, consumer and industrial stocks also recorded sharp declines.
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