Japan's Financial Markets Plummet Amid BOJ Rate-Hike Expectations

The Japanese financial markets have come under pressure as rising oil prices and government bond yields intensify expectations for further monetary tightening by the Bank of Japan.

The Nikkei fell more than 2.7%, extending its losses to a third consecutive session, erasing over $200 billion in market value, according to CoinBureau.

Bond yields also climbed sharply, with the 30-year Japanese government bond yield reaching 4.055% and the 10-year yield rising to 2.965%, reflecting growing pressure across Japan's fixed-income market ahead of the Bank of Japan's September policy meeting.

Almost all economists, at 97%, now expect the BOJ to raise its policy rate to 1.25% on September 18, following a Reuters poll that found 66 out of 68 economists forecasted a quarter-point increase.