Japan stocks fall as US-Iran strikes lift oil, bond yields

Business Recorder reported that Japanese shares slid on Wednesday as renewed American attacks on Iran pushed crude higher and raised concerns about a slowdown in the economy. The Nikkei dropped 2.95 per cent to 64,254.56 by 0154 GMT, while the broader Topix retreated 2.37 per cent to 4,082.89 and was on track to end a nine-session winning streak.

Oil gained almost 1 per cent in early trading after the two countries traded strikes overnight, which dimmed prospects of a swift easing of Middle East tensions. Higher global bond yields also hit growth-oriented stocks, including chipmakers. Japan's 10-year government bond yield touched 3.01%, its loftiest level since September 1996, while the two-year yield climbed to 1.83%, a peak unmatched since April 1995.

SoftBank Group dropped 6.233 per cent, Advantest declined 4 per cent and Tokyo Electron slipped 2.82 per cent, while Toyota Motor shed 2.5 per cent. Drug makers bucked the trend, with Sumitomo Pharma and Shionogi rising 1.48 per cent and 0.92 per cent, respectively, to lead the Nikkei's percentage gainers. Of more than 1,300 stocks on the Tokyo Stock Exchange's Prime Market, 93% fell and only 5% rose.