The rise in crude oil prices combined with surging global yields dampened market sentiment, and the Japanese stock market closed down. After the decline in US stocks, the artificial intelligence and chip sectors were sold off, which became a major drag on the market. At the close of Tokyo time, the TSE index fell 0.6% to 4028.30 points. The total number of constituent stocks in the index was 1,635, of which 529 rose, 1,040 fell, and 66 remained flat. The Nikkei 225 Index fell 1.9% to 64011.34 points. The sharp rise in oil prices triggered a sell-off in US bonds, the treasury bonds of developed Asian economies generally weakened, and the full-term yield on Japanese treasury bonds rose. Individual semiconductor-related stocks such as Kioxia and Edwin Test fell by more than 6%, ranking at the top of Nikkei's 225 component stock decline list. Fujiwara Naoki, senior fund manager of Shinkin Asset Management, said, “If the rise in interest rates is driven by an increase in crude oil prices, then this is a 'vicious' interest rate hike. For the semiconductor sector, the core is the valuation level. Maintaining relatively high valuations requires the cooperation of the interest rate environment. The rise in interest rates will inevitably depress the price-earnings ratio of the stock market and have a significant impact.”

The rise in crude oil prices combined with surging global yields dampened market sentiment, and the Japanese stock market closed down. After the decline in US stocks, the artificial intelligence and chip sectors were sold off, which became a major drag on the market. At the close of Tokyo time, the TSE index fell 0.6% to 4028.30 points. The total number of constituent stocks in the index was 1,635, of which 529 rose, 1,040 fell, and 66 remained flat. The Nikkei 225 Index fell 1.9% to 64011.34 points. The sharp rise in oil prices triggered a sell-off in US bonds, the treasury bonds of developed Asian economies generally weakened, and the full-term yield on Japanese treasury bonds rose. Individual semiconductor-related stocks such as Kioxia and Edwin Test fell by more than 6%, ranking at the top of Nikkei's 225 component stock decline list. Fujiwara Naoki, senior fund manager of Shinkin Asset Management, said, “If the rise in interest rates is driven by an increase in crude oil prices, then this is a 'vicious' interest rate hike. For the semiconductor sector, the core is the valuation level. Maintaining relatively high valuations requires the cooperation of the interest rate environment. The rise in interest rates will inevitably depress the price-earnings ratio of the stock market and have a significant impact.”