Nikkei, Kospi Sink Over 2% as Bond Yields Surge Ahead of BOJ Decision

Japanese and South Korean stocks fell sharply Thursday, with the Nikkei 225 down as much as 2.9% and the Kospi off 2.4%, as surging bond yields and rising oil prices triggered a broad risk-off move across Asia. The Nikkei has now posted losses for three straight sessions, with more than ¥35 trillion, roughly $225 billion, wiped from Japanese equity value over that stretch. Japanese government bond yields climbed across the curve, with the 30-year JGB touching 4.055% and the 10-year rising to 2.965%, as roughly 97% of economists now expect the Bank of Japan to raise rates to 1.25% at its September 18 meeting. Crude above $100 a barrel and Middle East tensions added to the selling pressure region-wide.