TOKYO, May 18 (News On Japan) –
Japan’s financial markets continued to suffer a so-called “triple decline” on May 18th, with stocks, the yen and government bonds all falling sharply amid growing concerns over worsening fiscal conditions and rising geopolitical tensions surrounding Iran.
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The yield on Japan’s benchmark 10-year government bond, a key indicator of long-term interest rates, temporarily climbed to 2.8%, marking its highest level in roughly 29 and a half years. The yield had only surpassed 2.7% on May 15th, but the pace of the increase has accelerated rapidly.
Market concerns have intensified due to rising crude oil prices linked to the situation in Iran, fueling fears of renewed inflationary pressure. Investors are also growing wary over reports that the government is considering compiling a supplementary budget, raising concerns about further fiscal deterioration.
The yen also weakened sharply, briefly approaching the 159-yen range against the U.S. dollar, its weakest level since the currency intervention carried out on April 30th.
Meanwhile, stock prices plunged, with the Nikkei index at one point falling more than 1,000 yen, highlighting the broad-based selloff across Japan’s financial markets.
Source: TBS
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: newsonjapan.com
