Japan's Nikkei, bonds hit multi-month lows on war-driven inflation fears
Why it matters: Rising oil costs and inflation risk could derail Japan’s market rally and push the BOJ toward tighter policy.
- Nikkei Index fell as much as 5% and sits 14% below its record high, erasing the year’s gains (per market data).
- 10‑year Japanese government bond yield jumped to 2.320%, its highest since Jan 21, reflecting inflation pressure (source: bond market data).
- Kazuaki Shimada, IwaiCosmo Securities says soaring oil prices will force firms to cut outlooks and hurt earnings (source: quote).
- Shuutarou Yasuda, Tokai Tokyo Intelligence warns global central banks may need to raise rates, a headwind for equities (source: quote).
- Bank of Japan kept rates steady but flagged rising oil‑driven inflation as a trigger for a possible early hike (source: BOJ statement).
Japan’s Nikkei plunged up to 5% and 10‑year JGB yields spiked as the Hormuz‑War‑driven oil price surge and inflation fears wiped out a year‑to‑date rally driven by stimulus hopes. Analysts warn that higher energy costs will dent corporate earnings and could force the BOJ toward an earlier rate hike.
