As the US September CPI exceeded market expectations and expectations of further rate hikes strengthened, weakness in US equities spread to Japan, sending the Nikkei Average sharply lower for a second straight session. Declines in semiconductor-related shares at the open and in the afternoon session drove down prices, while funds flowed into domestic-demand stocks.
In the US market, selling spread, particularly in technology stocks, after September's consumer price index exceeded market expectations, strengthening expectations of further rate hikes. The Nasdaq Composite and the SOX Index fell sharply, and the weakness in US equities affected the Japanese market as well.
The Nikkei Average closed on the 15th at ¥64,425.95, down ¥3,318.34 from the previous day. It opened at ¥66,880.37, fell below ¥65,000 in the morning session and then moved lower again in the afternoon before paring some of its losses, although it still ended with a sharp decline. Trading volume was approximately 3 billion shares on the TSE Prime Market, while trading value was approximately ¥10 trillion.
Among individual stocks, gainers included Fast Retailing, Ryohin Keikaku, Chugai Pharmaceutical, Astellas Pharma and Takeda Pharmaceutical, while decliners included アドバンテム, Tokyo Electron, SoftBank Group, Kioxia Holdings, TDK, Murata Manufacturing, FANUC and Kyocera.
By sector, domestic-demand and defensive sectors such as pharmaceuticals and retail attracted some funds, while nonferrous metals, electrical equipment, glass and ceramics and stone products were sold. The Nikkei Average's sharp second straight decline reflected persistent selling pressure on semiconductor-related stocks.