Tokyo’s stock market experienced a significant downturn on Thursday morning, with the Nikkei Stock Average plunging below the 70,000 threshold. This decline was primarily triggered by overnight losses on Wall Street and the rise in U.S. Treasury yields, signaling increasing concerns among investors.
The Nikkei Stock Average, which comprises 225 issues, fell by 662.31 points, or 0.95%, reaching 69,373.40. Similarly, the broader Topix index decreased by 62.02 points, or 1.49%, closing at 4,092.09. The market’s performance reflected widespread losses across most sectors, fueled by fears that elevated borrowing costs in the U.S. might hinder consumer spending and business investments.
Adding to the market’s unease, the 10-year U.S. Treasury yield rose to 5.36%, its highest level since April 2002. This surge has put additional pressure on Japanese equities, as Japan’s own 10-year government bond yield remained above 3%, further impacting domestic market sentiment.
Market confidence was also shaken by renewed geopolitical tensions, particularly following attacks on two airports in Saudi Arabia by Iran-aligned Houthi forces. This development has reignited concerns over crude oil supplies, adding another layer of complexity to the already strained market conditions.