Japan’s Nikkei falls to its lowest level in 4 months

Japan’s Nikkei index fell to its lowest level in four months on Tuesday, with rising US Treasury yields weighing on investor sentiment and the Federal Reserve’s pledge to prolong fiscal tightening.

The Nikkei index extended its losses in the afternoon, falling to 31,157.40 for the first time since June 1, before closing down 1.64 percent at 31,237.94 points.

Of the 225 companies on the index, 211 shares fell and 11 shares rose, while the shares of three companies remained unchanged.

The broader Topix index lost about 1.68 percent.

Ten-year Treasury yields rose to a 16-year high above 4.7 percent last night, pushing the yen to its lowest levels in a year at about 150 to the dollar.

Toyota Motor shares fell 3.05 percent and Mazda 6 percent.

Crude oil fell 2 percent on Monday after Federal Reserve leaders pledged to tighten fiscal policy.

As a result, resources sector stocks were the worst performers. Among the 33 industrial groups on the Tokyo Stock Exchange, the mining sector led the declines, declining 6.26 percent, followed by the oil and coal producing sector, which fell 5.47 percent.