The Nikkei Average plunged by more than ¥1,200 against a backdrop of the stalled AI market, falling below ¥68,000. An economic commentator pointed to the possibility that the "five-year rule" for Japanese mortgages is making the impact of higher rates less visible.
The Nikkei Average, which had recovered to the ¥70,000 range as recently as last week, fell by approximately ¥1,200 today amid uncertainty in the AI market, dropping below ¥68,000. The program reviewed the minutes of the U.S. FOMC meeting and the direction of Japanese monetary policy as the key points of focus going forward.
Economist Suehiro Toru (末廣徹) explained that the "five-year rule" for Japanese mortgages is making the impact of higher rates less visible. He discussed the effect of this system as a point to bear in mind when assessing the next move in the rate-hike cycle.
The program presented the view that instability surrounding AI stocks and the stalled AI market are affecting sentiment across the broader market. It was noted that upcoming economic data releases and policy developments will determine the market's direction.
As discussions continue over the Bank of Japan's actions and the contents of the U.S. FOMC minutes, it was deemed necessary to watch not only stock-price movements but also the rise in volatility across financial markets as a whole.