Japan’s Nikkei share average fell to a two-week low on Thursday, as investors turned risk-off after sharp declines on Wall Street and a spike in U.S. Treasury yields stoked worries about a flight from U.S. assets.
As of 0222 GMT, the Nikkei 
NI225 was down 0.8% at 36,998.73, after dropping to 36,873.61, the lowest since May 8.
The broader Topix 
TOPIX slipped 0.56% to 2,717.68.
“Caution emerged that there may be another sell-off of U.S. assets. U.S. Treasury yields rose, but the U.S. dollar weakened,” said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.
“The sell-off of U.S. assets overnight reminded the market of the rout in April after (U.S. President Donald) Trump’s tariff announcements in April,” he said.
Overnight, U.S. stocks closed sharply lower as Treasury yields spiked on worries that U.S. government debt would swell by trillions of dollars if Congress passes Trump’s proposed tax-cut bill.
Longer-dated U.S. Treasury yields rose overnight after the Treasury Department’s $16 billion sale of 20-year bonds saw soft investor demand.
The yen 
USDJPY strengthened against the dollar and was last up 0.24 % at 143.32.
Investor sentiment eased due to limited yen gain after the top financial officials of the U.S. and Japan agreed that the dollar-yen exchange rate currently reflects fundamentals, said Shinkin’s Fujiwara.
A stronger yen typically weighs on exporter shares by reducing the value of overseas earnings when converted back into Japanese currency.
Among individual stocks, chip-related Tokyo Electron 
8035 and Advantest 
6857 fell 3.42% and 3.27%, respectively, dragging the Nikkei the most.
Railway operator Keisei Electric Railway 
9009 shed 9.8% to become the biggest percentage loser on the Nikkei so far on Thursday.
Cable maker Furukawa Electric 
5801, a gauge for AI-related investment, jumped 7.7% to become the top performer.
AloJapan.com