Japan’s Nikkei falls 4% weekly on rising oil prices and bond yields, while Korea’s KOSPI gains from chip sector strength amid broader market divergence.
Japan’s Nikkei declined 0.3% at midday, extending its weekly loss to around 4%, its steepest since mid-July. Rising oil prices and bond yields fueled inflation concerns, amplifying pressure on equities as Middle East tensions escalated.
The broader Topix slipped 0.1%, heading for a 3.5% weekly drop. South Korea’s KOSPI bucked the trend, supported by chipmakers rallying on overnight gains in US peers, though it remains on track for a weekly decline.
Crude oil surged $2 overnight after the US threatened historic sanctions on Iran, adding volatility to regional markets. Treasury yields climbed, further weighing on Japanese stocks sensitive to inflation expectations.