2nd September 2026 – (Tokyo) Tokyo equities retreated at the start of Wednesday’s session, with the benchmark Nikkei down more than two per cent within the first quarter‑hour of dealings. The 225‑issue gauge fell around 1,414.08 points, or 2.14 per cent, from Tuesday’s close to stand near 64,801.26, mirroring the negative lead from Wall Street as higher crude prices and firmer US Treasury yields dampened sentiment. The broader Topix slipped 67.95 points, or 1.62 per cent, to about 4,113.91.
Dealers said a fresh bout of geopolitical tension tied to US military action against Iran pushed oil higher, intensifying worries about input costs and inflation just as yields in the United States ticked up, tightening financial conditions. The risk‑off tone filtered quickly through cyclical counters on the Prime Market, where electric appliance makers, non‑ferrous metal producers and transportation equipment names featured among the heaviest fallers.
Market participants noted that the combination of dearer energy and elevated bond yields has curbed appetite for growth stocks while raising questions over earnings resilience into the next quarter. Attention will remain on US data and any further geopolitical developments to gauge whether selling pressure persists into the afternoon session and the days ahead.
