Japan's Nikkei drops on rising bond yields, day after Takaichi's election announcement

Japan's Nikkei share gauge slid for a fourth-straight session on Tuesday (January 20) as domestic fiscal concerns drove bond yields to record highs, while trade friction between the United States and Europe also weighed on sentiment.

The benchmark Nikkei 225 Index fell 0.8% to 53,172.16 in early trade, poised for the longest sell-off in two months. The broader Topix slid 0.6% to 3,634.19.

Japanese Prime Minister Sanae Takaichi on Monday (January 19) officially called for a snap election for February 8 and pledged to suspend the nation's sales tax on food, spurring a surge in government bond yields to all-time highs.

While U.S. markets were closed for a holiday, European shares slumped overnight after U.S. President Donald Trump threatened to impose additional tariffs on eight European countries until the U.S. is allowed to buy Greenland.

Production: Irene Wang/Reuters