The Nikkei 225 Index fell 2.85% to close at 64,325 on Wednesday, reaching a four-week low as rising global bond yields and oil prices pressured equities. Oil advanced for a third straight session amid escalating hostilities between the US and Iran, increasing inflation risks and contributing to higher bond yields worldwide. Japan’s 10-year government bond yield reached 3% for the first time since 1996, supported also by expectations that the Bank of Japan will raise interest rates. Governor Kazuo Ueda said this week that policymakers need to focus more closely on upside price risks in setting monetary policy, signaling that a rate increase is likely later this month. Technology and AI-related shares led the decline, including Advantest, Fujikura, Taiyo Yuden, Tokyo Electron and SoftBank Group, while financial, consumer and industrial stocks also fell sharply.