TOKYO: Japanese stocks and bonds fell on Thursday and the yen remained fragile as investors weighed the economic impact of the prolonged Middle East conflict.
Shares extended losses to close lower following the Bank of Japan’s as-expected decision to keep its key rate unchanged, as traders grew cautious ahead of a Japanese trading holiday and a meeting between Prime Minister Sanae Takaichi and US President Donald Trump. Attention also shifted to a post-close speech by BOJ Governor Kazuo Ueda.
The blue-chip Nikkei plunged 3.4 percent to close at 53,372.53. The broader Topix slid roughly 3 percent to 3,609.40.
The benchmark 10-year Japanese government bond (JGB) yield rose 4.5 basis points (bps) to 2.260 percent as the yen traded near a 20-month low against the dollar.
“Investors wanted to reduce positions ahead of a three-day weekend as they weigh risks from the war in the Middle East,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
All 33 industry sub-indexes on the Tokyo Stock Exchange fell, with chip and AI-related stocks weighing on the Nikkei.
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