SoftBank Group’s shares fell 8.1% to ¥5,360 on Wednesday, extending losses amid a broader sell-off in Japan’s technology sector and rising sovereign yields.
The decline followed SoftBank’s announcement that it plans to issue approximately ¥1 trillion in seven-year retail bonds, marking a potential record for a Japanese corporate offering of this kind. Proceeds are intended to fund AI investments, but the move has raised concerns over the group’s already substantial debt burden.
Japan’s 10-year government bond yield climbed to its highest level since 1996, while U.S. 30-year Treasury yields reached a 19-year peak. The surge in borrowing costs has intensified pressure on SoftBank’s valuation, particularly for capital-intensive, long-term AI projects.
The Nikkei 225 index dropped as much as 3.1% in early trading, extending a two-day slump, while the broader Topix index fell up to 2.8%. Electronics and financial stocks led declines across the Tokyo market. Speculation over potential Bank of Japan policy tightening in September has further unsettled investors, compounding the sell-off.
SoftBank’s stock drop reflects a combination of factors: the overhang from its debt issuance plan and a bond-market rout affecting AI and technology stocks. Rising yields threaten the economics of AI infrastructure spending, adding to valuation pressures for companies with heavy long-duration investments.
