Tokyo’s benchmark stock index tumbled sharply on Thursday following a downturn in New York. A rise in US long-term yields has investors worried about the outlook for the American economy.
The Nikkei 225 ended at 38,054, down 502 points or 1.3 percent from Wednesday.
Analysts say many market players unloaded shares, especially semiconductor and other high-tech related issues. That led at one stage to a more than 900-point drop of over 2 percent.
Meanwhile, the yield on the 10-year Japanese government bond briefly rose to 1.1 percent on Thursday.
The benchmark bond-yield has hit a level not seen since July 2011. It’s been hovering above 1 percent after hitting that mark for the first time in 11 years last week.
Yields rise when government bond prices fall.