The Nikkei average fell for a second straight session in the morning session on the 16th, trading ¥88.10 below the previous day's close at the morning close. Rising US long-term yields and higher crude oil prices dampened investor sentiment, sending the index back into negative territory after the open.
In the Tokyo market before the morning close, the Nikkei average could not avoid an eight-digit decline, ending the morning session at ¥63,396.00 amid stagnant trading around the previous day's close. Resource-related shares were bought at times against the backdrop of higher crude oil prices, while persistently high US long-term yields weighed on high-priced stocks.
In the US market, the Dow Jones Industrial Average ended down $328.09 and the Nasdaq Composite down 204.84 points, as expectations of a rate hike strengthened ahead of the September FOMC meeting. Rising long-term yields and continued gains in crude oil prices broadened risk-averse selling, sending a wide range of sectors lower.
Among individual stocks, buying centered on export-related and resource-related shares, with Tokyo Electron, Shin-Etsu Chemical and Nitto Denko among the gainers. SoftBank Group, Fast Retailing and Sony Group, among others, fell. Declines in semiconductor-related stocks weighed on the market, along with caution toward AI-related shares.
In the afternoon session, the Nikkei average is expected to trade around the morning-close level, with Japanese and US long-term yields and crude oil price movements remaining the focus. Trading volume on the TSE Prime Market in the morning session was approximately 810.78 million shares.