Nikkei 225 Slips as Rising Global Yields Pressure Sentiment, BOJ Rate Hike Bets Grow

The 10-year US Treasury yield traded near 4.7%, reversing earlier declines from the week, while Japan’s benchmark 10-year government bond yield ended a two-day decline. The rebound in global yields renewed concerns among investors, as higher borrowing costs could continue to weigh on equity valuations, particularly in growth-oriented sectors such as technology.

Meanwhile, domestic data showed that Japan’s inflation rate accelerated for the second consecutive month, strengthening expectations that the Bank of Japan (BOJ) may raise interest rates again in the near term. BOJ Governor Kazuo Ueda previously signaled that policymakers could move toward faster monetary policy normalization if inflation and economic conditions continue to support further tightening.

Technology stocks led the decline on Friday, with several major companies posting losses. Fujikura Ltd. dropped 1.1%, while Taiyo Yuden Co., Ltd. declined 3.4%. Meanwhile, SoftBank Group Corp. fell 2.5% amid broader weakness in technology-related shares.

For the week, the Nikkei 225 Index dropped 3.93%, ending a two-week winning streak. Investors will continue to monitor movements in global bond yields, developments surrounding US fiscal policy, and the BOJ’s monetary policy direction as markets assess the outlook for Japanese equities.(mrv)

Source : Newsmaker.id