Nikkei tumbles over 2% to start the week as yields punish

• Nikkei losing ground as equities shake out
• Bond yields pricing in interest rate increases is pricing out indexes

The Nikkei dropped to open Tokyo trading, down to 22,735.00 following a weekend gap. Japan's leading index has followed the global trend of shaking out of record highs, as inflation begins to rear its head around the world, bringing the prospect of fiscal tightening close to home for equity markets.

Global borrowing costs are also starting to rise, with bonds pricing in higher yields across the board, with the benchmark 10-year Treasury hitting 2.86%. Equity markets will continue to second-guess their potentially overinflated values as bonds continue to price in the increasing risk of interest rate changes.

Nikkei Technicals: 

with the decline accelerating, the Nikkei doesn't have much support on the way down, as swing resistance at 23,108.00 on the hourly charts will be any intraday revival's main challenge heading into the last leg of the Tokyo trading day.

Today's pivot points:
R2: 23,916.70
R1: 12,453.30
PP: 23,201.70
S1: 22,738.30
S2: 22,486.70