Tokyo’s stock market experienced a significant downturn on Thursday, with the Nikkei Stock Average plunging below the 70,000 mark. The index fell 662.31 points, or 0.95%, to reach 69,373.40, while the broader Topix index dropped 62.02 points, or 1.49%, settling at 4,092.09. This decline came as a response to the losses incurred on Wall Street overnight and the rising yields on U.S. Treasury bonds.
The financial landscape is being heavily influenced by the 10-year U.S. Treasury yield, which has climbed to 5.36%, marking its highest point since April 2002. This spike in borrowing costs has intensified concerns about its potential impact on consumer spending and business investments, leading to a negative sentiment across most sectors in Japan’s stock market.
Additionally, Japan’s own benchmark 10-year government bond yield remained above the 3% threshold, further exerting pressure on domestic equities. This situation has compounded investor fears, combining the effects of international and local financial pressures.
Market sentiment was further dampened by geopolitical factors, particularly after renewed concerns over crude oil supplies. These concerns were sparked by recent attacks on two airports in Saudi Arabia, attributed to Iran-aligned Houthi forces, raising anxieties about potential disruptions in oil production and supply chains.