Japan's Nikkei stock index experienced significant declines, influenced by rising long-term interest rates and weak performance on Wall Street. On Thursday morning, the Nikkei dropped more than 800 points and fell below 38,000. By the end of the day, the index had reached a one-month low, down 2%. The Hang Seng index also saw a decline of nearly 2%. The downturn in Japanese stocks was primarily driven by concerns over increasing Japanese Government Bond (JGB) yields and the broader impact of higher interest rates. Nikkei futures were down 1.14%.