The Nikkei 225 slipped 1.3%, closing at 32,210 points, after a sharp rise in U.S. crude to $93.12 a barrel—BLOOMBERG data shows the move tied to U.S.–Iran tensions that keep oil above $93.
The TOPIX mirrored the trend, dropping 1.5% to 7,800, while South Korea’s KOSPI began the day in the red, trading 0.8% lower.
Bond markets mirrored the bearish mood: the U.S. 10‑year Treasury yield jumped 11 basis points to 5.27%, its highest level in 19 years, and the 30‑year yield advanced to 5.55%. Bloomberg noted the rise reflects expectations of continued Fed tightening.
Commodity prices added pressure—gold slid nearly 4% to $4,120 an ounce, and Brent crude held above $106. The combination of high oil and rising yields is tightening global liquidity and inflating inflation fears.
Analysts see the day’s move as a warning signal. “Rates are already in play,” said Rajeev Patel, senior market strategist at ICICI Prudential. “We expect the Fed to keep the policy rate above 5% through 2026.”
Looking ahead, the RBI’s policy meeting is set for next Friday, and the U.S. Treasury will release the 10‑year yield curve data tomorrow. Investors should monitor the Fed’s minutes for clues on the next rate hike.