Japanese stocks fall as oil prices and bond yields rise

Japanese stocks fell sharply on Friday as higher oil prices and rising global bond yields weighed on investor sentiment. The Nikkei 225 dropped 1.93% to 64,011, while the broader Topix fell 0.65% to 4,028.

Investors also remained cautious ahead of the US CPI report. Thursday?s stronger-than-expected producer price data raised expectations that the Federal Reserve could raise interest rates next week.

In Japan, the Bank of Japan is also expected to continue raising interest rates. BOJ board member Kazuyuki Masu said policymakers are likely to keep tightening policy and gradually reduce monetary support as inflation moves closer to the 2% target.

Technology and AI-related stocks were among the biggest losers. Kioxia Holdings fell 7%, Advantest dropped 6.5%, SoftBank Group declined 4%, Tokyo Electron lost 2.6%, and Taiyo Yuden slipped 2.1%.

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