The Nikkei 225 closed lower as expectations for a U.S. rate hike resurfaced. The index closed at ¥66,311.93, down ¥93.63 from the previous day, with renewed expectations for a U.S. rate hike in September weighing on stocks.
The Nikkei Stock Average ended lower in Tokyo trading on the 31st. It closed at ¥66,311.93, down ¥93.63 from the previous day. The index fell by more than ¥1,500 at one point in the morning, but buying later narrowed the decline.
Expectations for a U.S. rate hike in September resurfaced amid remarks by Federal Reserve officials at Jackson Hole. Rising U.S. long-term interest rates and weakness in U.S. semiconductor stocks weighed on the market, while selling led the declines in domestic names such as Advantest and Tokyo Electron.
After the initial selling subsided, buying in stock index futures supported the market and narrowed the Nikkei's decline. Buying prevailed mainly in AI and semiconductor-related stocks, while the Tokyo Stock Price Index (TOPIX) turned higher. Automakers and bank stocks also remained firm.
Long-term interest rates in Japan and the United States continued to trend higher, while high domestic long-term interest rates also drew attention. Trading value on the TSE Prime Market was approximately ¥9.3583 trillion, and trading volume was approximately 2.67487 billion shares. A wait-and-see mood was gradually spreading across the market.
Following the day's closing prices and market movements, TOPIX rose for an eighth straight session to close at 4,156.29 points, while the JPX-Nikkei 400 rose 54 points to 37,419.