Japanese government bond sell-off triggers turmoil, Japanese and South Korean stock markets open over 1% lower

According to Odaily, on January 21, Japan's government bond market experienced a large-scale sell-off, with yields on 30-year and 40-year bonds rising by more than 25 basis points in a single day. The yield on the 40-year government bond reached 4%, the highest level since 2007. The market turmoil was triggered by Prime Minister Sanae Takaichi's fiscal plan to cut taxes and increase spending, causing investors to worry about the sustainability of Japan's finances. As a result, the Nikkei 225 Index opened today down 718.60 points, a decrease of 1.36%, at 52,272.50 points. South Korea's KOSPI Index also opened down 74.42 points, a drop of 1.52%, at 4,811.33 points. In addition, US Treasury yields simultaneously rose to multi-month highs.