The Nikkei average stood at ¥63,396.00 at the morning close, down ¥88.10. Trading on the 16th remained sluggish, amid weakness in US markets and concern over rising long-term interest rates.
The Nikkei average ended the morning session at ¥63,396.00, down ¥88.10, with estimated trading volume of 810.78 million shares. US stocks continued to decline the previous day, with the Dow ending down $328.09 and the Nasdaq down 204.84 points. Rising crude oil prices and concern over slowing AI development created selling pressure, while growing expectations of a rate hike at the September FOMC meeting drove long-term interest rates higher.
The Nikkei started trading on the 16th at ¥63,672.13, up ¥188.03, but soon turned negative. Concern spread after the US 10-year Treasury yield reached a high level, prompting selling in high-priced shares and leaving the market range-bound at slightly lower levels toward the morning close.
Among individual gainers were Tokyo Electron, Shin-Etsu Chemical, FANUC, Kyocera and KDDI, while decliners included SoftBank Group, Fast Retailing, Sony Group and Mercari. By sector, oil and coal products, mining, and electric power and gas performed firmly, while pharmaceuticals, information and communications, and retail weighed on the market.
The market is expected to trade around the morning closing level in the afternoon session, with views that rising long-term interest rates in Japan and the US and higher crude oil prices will continue to discourage buying. Developments in AI-related stocks are also likely to remain a focus for the market.