The Nikkei 225 Index fell 0.6% to below 66,000 on Tuesday, extending the previous session’s losses as rising oil prices fueled inflation concerns and reinforced expectations of near-term interest rate hikes. Japanese equities also tracked a weak Wall Street lead, where Treasury yields climbed amid growing bets that the Federal Reserve will raise rates this month.
On the domestic front, investors increasingly expect the Bank of Japan to consider a rate hike in September, given persistent yen weakness and import-driven inflation pressures. Technology and AI-related stocks led the downturn, with notable declines in Fujikura (-3%), Advantest (-2.9%), Tokyo Electron (-4.6%), Taiyo Yuden (-1.5%) and Murata Manufacturing (-1.4%). Financial shares also retreated, while consumer stocks managed modest gains.
SOURCE LINK : Japanese Shares Fall on Higher Oil Prices
