Oil prices rose for a third straight session as tensions between the US and Iran increased concerns about inflation and energy supplies. Higher inflation fears pushed bond yields higher, with Japans 10-year government bond yield reaching 3% for the first time since 1996.

Expectations of a Bank of Japan rate hike also weighed on sentiment. Governor Kazuo Ueda said policymakers need to pay closer attention to rising price risks, strengthening expectations of a possible rate increase later this month.

Technology and AI-related stocks led the decline. Advantest fell 2.5%, Fujikura dropped 3.9%, Taiyo Yuden lost 4.6%, Tokyo Electron declined 3.4%, and SoftBank Group slid 6.4%. Financial, consumer and industrial stocks also recorded notable losses.

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 02 2026 | 4:04 PM IST

Source: Read the original article on www.business-standard.com