Tokyo, January 20 (QNA) - Japanese government bonds fell, pushing their yields up to record levels, while stock markets and the yen fell after Prime Minister of Japan Sanae Takaichi's call for an early election shook confidence in the country's fiscal position.

Takaichi's new campaign pledge to cut the sales tax on food led yields on 20-year Japanese government bonds to rise by as much as 19.5 basis points, the largest one-day move since April, to 3.45 percent as demand for the notes slumped at an auction.

The benchmark Nikkei 225 index dropped 1.1 percent to close at 52,991.10, losing 2.5 percent over the past four days in its longest sell-off in two months.

The yield on 40-year Japanese government bonds, the longest maturity in Japan, rose by 26 basis points to a record 4.205 percent.

With US markets closed, Japanese stocks followed the decline in European shares, and the broader Topix index fell 0.8 percent to close at 3,625.60. (QNA)