Japan's Nikkei slumps as oil, bond yields weigh on sentiment
EWJ•Japan's Nikkei 225 fell 0.60% to 65,481.27 on Tuesday, while the Topix slipped 1.72% to 4,041.13, as rising oil prices and bond yields weighed on sentiment.
1. Japanese shares fall
The Nikkei fell for a second straight session, with 36 advancers and 188 decliners. Nexon was the index's biggest decliner, falling 14.42%; Tokai Carbon led gainers, rising 4.75% to a record-high close.
2. Yields and oil weigh
Rising oil prices and global bond yields stoked inflation concerns and expectations that monetary policy would remain tight. Japanese government bond yields hovered near multi-decade highs. Nomura Securities equities strategist Wataru Akiyama said inflation concerns and rising interest rates were weighing on stocks, while AI-related shares were increasingly seen as relatively overvalued in that environment.
