Tokyo stock markets experienced a significant downturn on Thursday morning, with the Nikkei Stock Average plummeting below the 70,000 mark. This decline was primarily driven by investor reactions to the overnight losses on Wall Street and escalating U.S. Treasury yields.
The Nikkei Stock Average, comprising 225 issues, fell by 662.31 points, or 0.95%, settling at 69,373.40. Simultaneously, the broader Topix index decreased by 62.02 points, or 1.49%, to 4,092.09. The widespread losses across most sectors reflected growing concerns that higher borrowing costs in the U.S. might dampen consumer spending and business investments.
Adding to the pressures on the Japanese markets was the rise in the 10-year U.S. Treasury yield, which reached 5.36%, its highest level since April 2002. Japan’s own benchmark 10-year government bond yield also remained above 3%, further impacting domestic equities.
Market sentiment was also negatively influenced by renewed geopolitical tensions. Attacks on two airports in Saudi Arabia by Iran-aligned Houthi forces raised concerns over crude oil supplies, contributing to the overall cautious mood among investors.