Nikkei 225 Retreats as Rising Bond Yields Pressure Tech Growth

The Nikkei 225 Index dropped 323.24 points, or 1.09%, to close at 29,450.87, snapping a three-session winning streak. The downturn was primarily fueled by rising global bond yields, which weighed heavily on technology and high-growth equities, offsetting positive cues from Wall Street. The market exhibited a clear divergence between sectors. While growth-oriented stocks struggled, value-driven sectors—particularly banking and automotive—found support, suggesting a rotation in investor preference amid shifting macroeconomic conditions. Tech heavyweights faced significant pressure, with Advantest falling over 3% and SoftBank Group declining more than 2%. In contrast, the financial sector saw gains, led by Sumitomo Mitsui Financial, which rose nearly 3%, and Mitsubishi UFJ Financial, which added over 1%. Automakers also performed well, with Toyota gaining more than 2% and Honda adding nearly 1%. Domestic economic indicators provided a silver lining. Jibun Bank's latest survey showed the manufacturing PMI climbed to 54.2 in November from 53.2 in October. The services PMI also improved to 52.1, pushing the composite PMI to 52.5, indicating continued expansion in the Japanese economy. Global context remained mixed. On Wall Street, the Nasdaq fell 0.5% while the Dow and S&P 500 edged higher. In the currency market, the U.S. dollar continued to trade in the lower 115 yen range.