Tokyo Stocks Plummet Amid Rising Bond Yields and Middle East Tensions

Tokyo stocks took a sharp hit on Wednesday morning due to rising bond yields and inflation concerns, as well as the US-Iran conflict driving up oil prices.

The Nikkei Stock Average plummeted by 1,742.18 points, or 2.63 percent, from Tuesday to 64,473.16, while the Topix index fell 91.58 points, or 2.19 percent, at 4,090.28.

The US dollar strengthened in Tokyo, reaching 160.27-28 yen compared to 159.98-160.00 yen on Tuesday afternoon, driven by rising crude oil prices which pose a key risk for Japan as an oil importer.

Rising bond yields also weighed heavily on the market, with the yield on the benchmark 10-year Japanese government bond reaching its highest level since September 1996 at 3.015 percent.