The Nikkei Average fell sharply, closing at ¥64,325, down ¥1,889. Long-term interest rates rose into the 3% range, while heightened concern over the situation in the Middle East and rising oil prices compounded the pressure.
The Nikkei Average plunged as expectations for a Bank of Japan rate hike grew. The decline widened from the opening level and continued into the afternoon.
In addition to long-term interest rates rising into the 3% range, heightened concern over the situation in the Middle East and rising crude oil futures weighed on market sentiment.
Market participants say the market must be monitored on the assumption that tensions in the Middle East may be prolonged and that high interest rates will persist.
The decline reflected a combination of global interest-rate and energy trends and geopolitical risks, prompting many to say that future market developments should be closely watched.