Japan stocks slide as bond yields hit records and Greenland tensions bite

Japanese stocks slid as bond yields surged to record highs and trade tensions intensified, marking a fourth consecutive down session. The Nikkei 225 fell as it approached its longest losing streak in about two months. The catalyst for rising yields was Prime Minister Sanae Takaichi's call for a snap election, where her campaign included suspending the sales tax on food, alarming investors regarding fiscal discipline. In addition to domestic pressures, external risks, such as Trump's threats of tariffs on Europe, have further dampened sentiment. Strategists at Nomura warned that rising yields could hinder equity performance moving forward. The election outcomes could vary from a relief rally on a landslide victory for Takaichi to a potential sell-off if her party loses power, or a range-bound market in the event of a narrow win, pending clearer policy direction.