Japan's Nikkei 225 Plummets as Oil Prices and Bond Yields Soar

The Nikkei 225 index in Japan plummeted by 2.85% to 64,325 on Wednesday, marking its lowest level in four weeks.

The decline was triggered by a surge in global bond yields and oil prices, which are causing concerns about inflation and energy supplies.

Rising tensions between the US and Iran have led to increased expectations of higher oil prices, while fears of inflation have pushed bond yields up. Japan's 10-year government bond yield has reached 3% for the first time since 1996.

The Bank of Japan's potential rate hike is also weighing on sentiment, with Governor Kazuo Ueda stating that policymakers need to pay closer attention to rising price risks.