The Nikkei 225 dropped 2.85% to 64,325 on Wednesday, hitting a four-week low due to rising global bond yields and oil prices affecting Japanese stocks. Oil prices increased for the third day as tensions between the US and Iran raised inflation and energy supply concerns. Japan's 10-year government bond yield reached 3% for the first time since 1996, driven by higher inflation fears. Expectations for a potential Bank of Japan rate hike also influenced market sentiment, as Governor Kazuo Ueda highlighted the need to address rising price risks. Technology and AI stocks led the declines, with significant losses in Advantest, Fujikura, Taiyo Yuden, Tokyo Electron, and SoftBank Group, among others.