Japan's Indexes Faltered as High Global Yields and Middle East Tensions Weighed

Akira Ito
24 Aug, 2026
Tokyo

Japan's benchmark indexes traded down in Monday's trading due to elevated global bond yields and persistent tensions in the Middle East. 

The Nikkei 225 Stock Average decreased 0.3%, the broader TOPIX edged up 0.2%, and the yen edged up to 158.85 against the U.S. dollar.

The yield on 10-year Japanese government bonds held at 2.88% as the last week's U.S. government surprise bond buyback announcement failed to ease concern over rising debt and persistent inflation. 

Investors are concerned that the recent U.S.-Japan joint intervention may not halt the yen's steady decline against the U.S. dollar, given the rising fiscal deficit, persistent inflationary pressures, and lagging response from the Bank of Japan.

The Brent crude oil price decreased 1.4% to $93.03 ahead of the release of new U.S. economic sanctions on Iran later today. 

Investors are awaiting the release of Nvidia Corp.'s earnings on Wednesday for clues about whether the recent AI-driven market rally is sustainable. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.3% to 65,670.55, and the broader TOPIX increased 0.2% to 4,075.58. 

Computer chipmakers and semiconductor-linked stocks led decliners in Monday's trading. 

Kioxia Holdings decreased 6% to ¥51,020.0, Tokyo Electron added 1.5% to ¥55,090.0, Advantest Corp. fell 2.5% to ¥34,990.0, and SoftBank Group eased 4.5% to ¥5,020.0. 

Financial stocks also participated in the market's downturn in Monday's trading. 

Mitsubishi UFJ Financial Group eased 0.1% to ¥3,507.0, Sumitomo Mitsui Financial Group fell 0.2% to ¥6,597.0, and Mizuho Financial Group decreased 0.3% to ¥8,132.0. 

Nippon Yusen KK added 1% to ¥7,167.0, Mitsui OSK Lines decreased 0.1% to ¥7,274.0, and Kawasaki Kisen Kaisha Ltd. jumped 1.6% to ¥3,461.0.