The Nikkei average slumped 1.56 percent to 49,383.29, closing below the 50,000 mark for the first time in over three months.
The broader Topix index settled 1.78 percent lower at 3,370.50 amid bond market jitters. Chip and artificial intelligence stocks led losses, with Renesas and Shin-Etsu Chemical losing 4-5 percent. Robotics firm Yaskawa Electric plunged 7 percent.
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