Japan's Nikkei 225 slides 1.3% as surging bond yields and oil pressure tech shares

Japan's Nikkei 225 dropped 1.3% on Tuesday, marking its second straight session of declines amid broader regional losses. The sell-off followed overnight weakness in US equities, driven by rising crude oil prices and soaring sovereign bond yields that revived inflation concerns and expectations of prolonged tight monetary policy. Domestic Japanese government bond yields traded near multi-decade highs, severely dampening demand for interest-rate-sensitive, high-valuation AI and technology stocks. Across the region, the broader Topix slid 1.75% while Hong Kong's Hang Seng declined 0.8% as Brent crude hovered near $107 per barrel.