STOCKS | Nikkei 225 Declines Amid Global Bond Sell-Off and Middle East Tensions

On May 18, Jin10 reported that the Nikkei 225 index fell for the third consecutive trading day, closing at 60,815.95 points, down 1%. The Topix index also declined, ending at 3,826.51 points, a decrease of 0.97%. According to Jin10, the global bond market sell-off and escalating tensions in the Middle East have dampened risk appetite. Last Friday, major U.S. stock indices closed lower, weighed down by declines in AI-related stocks, which weakened investor sentiment. Meanwhile, concerns over potential inflationary pressures from a possible Iran war led to a surge in Japanese government bond yields on Monday, continuing the sell-off in global fixed income markets. Nomura Securities equity strategist Maki Sawada noted that investors reacted negatively to the decline in the three major U.S. indices and the rise in Japan's 10-year government bond yields. Sawada added that the market continued Friday's trend, influenced by sectors such as semiconductors, AI-related stocks, and large-cap stocks. She also mentioned that the difficulties in U.S.-Iran ceasefire negotiations remain a source of concern.