Japan stocks remain in focus as Nikkei volatility meets rising bond yields and rate concerns. (AI-generated image) Most of the losses in the Nikkei were regained by the session’s close, ending at 66,311.93, which was down 93.63 points, or 0.14%. This closing level was well above the morning low and marked the session high. The Topix closed at 4,156.29, up 0.23%, reversing its earlier decline. As trading progressed, market breadth improved: 131 Nikkei components advanced, 91 declined, and three remained unchanged. The rebound significantly narrowed a morning drop that had temporarily exceeded 2%. Meanwhile, Japanese bond yields increased alongside the early equity downturn. The benchmark 10-year government bond yield reached 2.95% on Monday, its highest point since 1996. The two-year yield climbed to 1.73%, marking its highest level since April 1995. Shorter-term maturities tend to closely follow expectations for monetary policy changes. As bond prices move inversely to yields, this rise in yields was accompanied by a decline in government debt prices. Market sentiment also shifted towards pricing in higher policy rates in both Japan and the United States. Bond yields hit levels not seen in three decades Technology stocks largely contributed to the initial downward pressure in equities, after U.S. semiconductor shares weakened at the end of the previous week. Due to the Nikkei’s