TOKYO: Japan’s Nikkei share gauge fell sharply on Tuesday as a global surge in bond yields and rising oil prices weighed on sentiment.
The benchmark Nikkei 225 slid 1.23percent to 65,070.58 in early trading, set for a second straight decline. The broader Topix slipped 1.75percent to 4,040.16. The sell-off followed overnight declines in US equity markets, as rising oil prices and Treasury yields stoked inflation worries and concerns that monetary policy would stay tight. Pressure is also building in Japan, with the nation’s government bond yields hovering near multi-decade highs.
US and Iranian officials spoke separately with mediators on Monday as part of a renewed effort to end seven months of war that has roiled energy markets.
“It seems fair to say that these concerns about inflation, and the resulting rise in interest rates, are weighing on the stock market,” said Wataru Akiyama, an equities strategist at Nomura Securities.
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