Tokyo stocks experienced a significant decline on Thursday morning, as the Nikkei Stock Average dropped below the 70,000 mark. This fall was prompted by overnight losses on Wall Street and increasing U.S. Treasury yields, which have sparked investor concerns globally.
The Nikkei Stock Average fell by 662.31 points, or 0.95%, settling at 69,373.40. Meanwhile, the broader Topix index recorded a decline of 62.02 points, or 1.49%, closing at 4,092.09. The downturn affected most sectors, as fears mounted that higher U.S. borrowing costs could dampen consumer spending and business investment.
The 10-year U.S. Treasury yield, a key benchmark for global interest rates, reached 5.36%, its highest level since April 2002. This rise in yields has created additional pressure on Japan’s domestic markets, where the benchmark 10-year government bond yield remains above 3%.
Adding to the market’s apprehension were renewed concerns over crude oil supplies. This was triggered by attacks on two airports in Saudi Arabia, attributed to Iran-aligned Houthi forces, further unsettling market sentiment.
As investors navigate these complex factors, the impact of U.S. economic policies continues to reverberate through global financial markets, affecting investor confidence and stock valuations in Japan.