The Nikkei 225 fell from the previous day amid rising US long-term interest rates. With the Jackson Hole meeting approaching, the Japanese stock market is expected to show a stronger tendency to remain on the sidelines.
The Nikkei 225 closed at ¥66,016.36 on 21 August 2026, down ¥200.43 from the previous day, falling in response to higher US long-term interest rates. The renewed rise in long-term interest rates following the US Treasury's announcement of an expansion of its buyback programme has been cited as one factor behind the decline.
Among individual stocks, AI and semiconductor-related names showed signs of remaining firm, while SoftBank Group fell. In the US market, Walmart shares plunged. Although revenue and earnings per share exceeded market expectations, the decline was attributed to the low level of same-store sales growth in the US.
The Dow Jones Industrial Average rebounded sharply on 21 August, but concerns about higher oil prices remain amid the upward trend in US long-term interest rates and uncertainty over the situation in the Middle East. These factors could weigh on markets during the week.
This week's main event is the Jackson Hole meeting, the US economic symposium to be held on the 27th. Chair Warsh is scheduled to make a first appearance, and market attention is expected to focus on the outlook for future rate hikes. With official guidance expected to be restrained, some observers caution that unexpected market moves also warrant attention.