Tokyo stocks experienced a significant decline on Thursday, driven by investor reactions to Wall Street’s overnight losses and increasing U.S. Treasury yields. The Nikkei Stock Average fell below the 70,000 mark, closing at 69,373.40 after a drop of 662.31 points or 0.95%. The broader Topix index also saw a decline, shedding 62.02 points or 1.49%, to finish at 4,092.09.
The market downturn was largely influenced by concerns over rising U.S. borrowing costs, which could potentially dampen consumer spending and business investment. The 10-year U.S. Treasury yield has surged to 5.36%, marking its highest point since April 2002. This rise in yields is adding pressure on global markets, including Japan’s, where the benchmark 10-year government bond yield remains above 3%.
Investor sentiment was further strained by geopolitical tensions, following attacks on two airports in Saudi Arabia by Iran-aligned Houthi forces. These events have raised renewed worries about crude oil supplies, contributing to the cautious market environment.
Most sectors in the Tokyo market reported losses, reflecting the broader apprehension about the impact of higher borrowing costs and geopolitical instability. Analysts are closely watching these developments as they continue to shape market dynamics and influence investor behavior.