Tokyo Stocks Plummet Amid US-Iran Tensions and Inflation Fears

Tokyo stocks experienced a decline on Tuesday morning, weighed down by concerns over stalled US-Iran talks and inflation fears. The Nikkei Stock Average dropped 1,121.71 points, or 1.62 percent, to 68,098.54.

The Topix index also fell, down 19.00 points, or 0.45 percent, at 4,165.11. The US dollar traded in the mid-159 yen range due to flight-to-safety demand amid heightened tensions in the Middle East.

President Donald Trump's comment that he would not seek an extension of the US-Iran memorandum of understanding also had a negative impact on stocks. The yield on the 10-year Japanese government bond rose to 2.945 percent, its highest level since October 1996, due to concerns over inflation stemming from unstable crude oil supplies.