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Nikkei drops to near 3-week low as spike in bond yields spooks investors

By Reuters Staff 2 Min Read TOKYO, Feb 26 (Reuters) - Japanese shares dropped on Friday, with the Nikkei on course to log its biggest fall since July, after a spike in global bond yields spooked investors already uneasy about the market’s stretched valuation. Nikkei average fell 2.54% to 29,400.80, hitting its lowest level in almost three weeks. If sustained, it will be the biggest daily drop since July 31, when it fell 2.82%. For now, the Nikkei managed to find a support at its 25-day moving average of around 29,200. The broader Topix lost 1.98% to 1,888.02 Except one, mining shares, all of the Tokyo Stock Exchange’s 33 industry subindexes were in the red, with electronic machinery makers, pharmaceuticals and real estate companies also falling more than 2%.

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