Nikkei 225 Falls on Rising Bond Yields and Rate Hike Fears

The Nikkei 225 index in Japan fell by 0.3% on Friday to close at 66,016, weighed down by rising global bond yields and concerns about interest rate hikes.

Rising US Treasury yields were a key factor, with the 10-year yield increasing back to around 4.7%. Japan's own 10-year bond yield also moved higher, adding to investor anxiety.

The Japanese economy is already feeling pressure from rising borrowing costs, and investors are uncertain about whether the Bank of Japan's debt buybacks will provide lasting relief for businesses.

The market's concerns were further exacerbated by Japan's inflation rate accelerating for a second straight month, increasing expectations that the Bank of Japan could raise interest rates soon.