Most Japanese stocks fell during Monday’s trading session.
This came as investors assessed weaker-than-expected economic growth data, along with the impact of tensions in the Middle East on inflation, oil prices, and bond yields.
The Nikkei index fell 0.01% to 68,721.56 points.
Meanwhile, the broader Topix index fell 0.48% to 4,177.02 points.
Data showed that the Japanese economy grew at an annual rate of 1.1% during the three months ending in June.
This was compared to expectations of 2.0%. The slowdown was the result of stagnant private consumption and a 1.2% decline in capital expenditure, raising concerns about the strength of domestic demand.
Furthermore, tensions in the Middle East and disruptions to tanker traffic through the Strait of Hormuz contributed to keeping oil prices high.
This pushed Japanese government bond yields to their highest levels in decades.
Wataru Akiyama, an equity strategist at Nomura Securities, said that rising interest rates could limit market gains.
In the stock market, Kioxia Holdings shares rose 5.14%.
Meanwhile, Ibaraki shares fell 9.40%, Trend Micro dropped 8.94%, and Dentsu declined 7.91%.
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