Tokyo stocks drop on U.S. rate hike fears as oil prices rise

Tokyo stocks fell sharply Thursday morning on concern over prolonged U.S. monetary tightening amid rising oil prices, while Japan’s benchmark long-term interest rate hit its highest level in about 10 years.

The yield on the 10-year Japanese government bond briefly rose to 0.750 percent, its highest level since September 2013.

The 225-issue Nikkei Stock Average dropped 558.89 points, or 1.73 percent, from Wednesday to 31,813.01. The broader Topix index was down 35.48 points, or 1.49 percent, at 2,344.05.

On the top-tier Prime Market, decliners were led by air transportation, warehousing and har...