The Nikkei 225 extended its decline modestly, while funds flowed into value stocks, driving power stocks, major trading houses and energy-related shares sharply higher. Concern over rising long-term US interest rates weighed on the market, while stocks related to price increases stood out in terms of stock selection.
The Nikkei 225 edged lower again today. All major US stock indexes fell, while rising crude oil prices and movements in long-term Japanese and US interest rates prompted selling in risk assets. The Nikkei 225 fell as low as ¥65,576.61 at one point, but later showed signs of narrowing its decline.
Among sectors, value stocks in electric power and gas, mining, oil and coal products, steel, wholesale trade and construction performed well. Energy-related shares also posted significant gains, with rising crude oil prices attracting investors’ attention.
Kyushu Electric Power, Mitsui & Co. and PARK24 were among the stocks in focus today. Kyushu Electric Power rose sharply as buying interest in value stocks provided a tailwind amid rising long-term interest rates. Related shares rose against the backdrop of heightened tensions in the Middle East, while PARK24 benefited from strong performance in its domestic parking business and cost controls.