Nikkei 225 hits record then falls 1% on inflation fears
Japan's Nikkei 225 Index hit a record high early Thursday but ended the day down 1% at 62,654.05, as excitement over AI stocks faded and concerns about rising inflation and interest rates took over.
The broader Topix Index also slipped by about 1%.
Japanese yields climb stocks sell off
Japanese government bond yields climbed to new highs, adding pressure on markets, partly due to inflation linked to the Middle East crisis.
Bank of Japan official Kazuyuki Masu called for earlier rate hikes to tackle these price rises.
Nonferrous metal producers and real estate firms were hit hardest; Mitsui Fudosan dropped 10%, and Fujikura lost nearly one-fifth of its value.
Even SoftBank Group's profits more than tripled in the January-March quarter, but its shares still fell as investors worried about stagflation risks.