Japan's Nikkei 225 fell for a second session as a bond sell-off dented risk
appetite for AI-linked trades. The index dropped more than 3% at the open, with
chip-related names pressured; Kioxia Holdings and Furukawa Electric were among
the heaviest decliners. Topix slid as much as 2.8%, led lower by electronics and
banks. Japan's 10‑year JGB yield rose to its highest level since 1996, prompting
market pricing of a possible BOJ rate hike next month. The 10‑year UST yield is
near its highest since early 2025. Daiwa Asset Management's chief strategist
said: "Rising yields will increase borrowing costs for hyperscalers, clouding
capex prospects and potentially hurting infrastructure firms that have benefited
from the AI investment boom."
