Japanese Stocks Tumble Amid Rising Oil Prices and Central Bank Rate Hikes

Japanese stock markets closed Tuesday with slight losses due to rising oil prices and higher bond yields. The Nikkei 225 index dropped 0.01% to close at 63,484, while the broader Topix index declined by 0.52% to 4,037 after earlier gains faded.

Oil prices remained near four-month highs, contributing to investor unease. Additionally, bond yields in both the US and Japan reached multi-year peaks, further pressuring markets.

The impending decisions from major central banks this week have investors on edge. Both the US Federal Reserve and the Bank of Japan are expected to raise interest rates.

Technology shares saw mixed results, with concerns growing over a slowing pace in AI development. Major tech stocks like Advantest, Fujikura, and Furukawa Electric experienced noticeable drops of 3%, 1.9%, and 3.3% respectively.

Kioxia Holdings, however, rose 2.3% after news emerged that the memory chipmaker might raise at least $10 billion through a new stock listing in the US.