Japan’s Nikkei 225 fell 1.23% to close at 59,804 on Wednesday, while the broader TOPIX declined 1.53% to 3,792, with both benchmarks hitting multi-week lows as they tracked overnight losses on Wall Street. The selloff came as global bond yields climbed sharply amid mounting inflation concerns tied to the Iran war. Japan’s benchmark 10-year government bond yield also surged to 2.8%, its highest level since September 1996, after stronger-than-expected economic growth data reinforced expectations for further monetary tightening. Markets are increasingly pricing in a potential interest rate hike from the Bank of Japan as early as next month following hawkish remarks from policymakers. Investors are also awaiting Japan’s latest trade and inflation data for additional clues on the economy’s strength. Technology and AI-related shares led the decline, with steep losses from SoftBank Group (-6%), Fujikura (-8.5%), Tokyo Electron (-2.3%) and Lasertec (-1.1%).