The Nikkei 225 Index declined 0.8% to below 56,500 on Monday, giving back part of last week’s gains as oil prices spiked following the failure of US–Iran negotiations over the weekend in Islamabad. President Donald Trump also announced plans for a blockade of the Strait of Hormuz and is reportedly considering renewed strikes on Iran, raising concerns over a broader escalation in the global energy crisis. In Japan, the benchmark 10-year JGB yield rose to around 2.49%, its highest level since 1997, as surging energy costs strengthened expectations of a near-term Bank of Japan rate hike. Tech stocks led losses, with declines in Kioxia Holdings (-1.1%), Lasertec (-2.4%), Tokyo Electron (-3.5%), Advantest (-1%), and SoftBank Group (-1.3%). Broader index heavyweights also weakened, including Sumitomo Electric (-2.4%), Fast Retailing (-1.1%), and Nintendo (-1.2%).
