Tokyo stocks opened sharply lower for the second straight session, with the Nikkei down ¥1,019 from the previous day at ¥65,195. Across-the-board declines in U.S. and European stocks and concerns over higher interest rates weighed on investor sentiment, with selling concentrated in semiconductor stocks.
Risk aversion intensified in the previous day's European and U.S. markets, sending stocks lower and affecting the Japanese market at the open. Alongside declines in U.S. stock indexes, technology-heavy stocks have come under pressure.
Oil prices surged amid concerns over the situation in the Middle East, while interest rates are expected to continue rising as concerns over global inflation intensify. This has also heightened selling pressure in the Japanese market as investors focus on interest rate trends.
Japan's 10-year government bond yield at times rose above the 3% mark, while the possibility of the Bank of Japan bringing forward rate hikes has also affected investor sentiment.
Weakness in semiconductor-related stocks in the U.S. market has kept selling pressure particularly evident in the same sector in Japan.