Japan's Nikkei slumps as oil, bond yields weigh on sentiment
EWJ•Japan's Nikkei 225 fell 1.23% to 65,070.58 in early trading, while the Topix slipped 1.75% to 4,040.16, as rising oil prices and bond yields weighed on sentiment.
1. Japanese shares fall
The Nikkei was set for a second straight decline after overnight losses in U.S. equity markets. On the Nikkei, 26 stocks advanced and 199 declined.
2. Inflation concerns weigh
Rising oil prices and Treasury yields stoked inflation worries and concerns that monetary policy would remain tight. Japanese government bond yields were hovering near multi-decade highs. Nomura Securities equities strategist Wataru Akiyama said inflation concerns and rising interest rates were weighing on stocks, and that AI-related shares were increasingly viewed as relatively overvalued as rates rose.
3. Largest movers
NEXON fell 14.57%, Idemitsu Kosan dropped 5.1%, and Chubu Electric sank 4.46%. Tokai Carbon gained 3.29%, Screen Holdings rose 2.65%, and Lasertec added 2.48%.
