The Nikkei average fell sharply for a second straight session in Tokyo on the 2nd, ending at ¥64,325.64, down ¥1,889.70, in a broad-based decline. Rising long-term interest rates and crude oil prices were cited as factors weighing on investor sentiment, with selling spreading particularly among technology stocks.
The Nikkei Stock Average fell sharply on the Tokyo Stock Exchange, ending at ¥64,325.64, down ¥1,889.70 from the previous day. The TOPIX also fell significantly, with all 33 sectors declining. Trading volume was 2.41905 billion shares, as selling swept the market and more than 90% of listed stocks declined.
Rising long-term interest rates weighed on the market, with technology stocks particularly affected. The yield on newly issued 10-year Japanese government bonds remained at its highest level in roughly 30 years, and was viewed as one factor strengthening expectations of tighter liquidity. Declines in the share prices of highly influential stocks such as SoftBank Group and Tokyo Electron were cited as contributing to the drop in the average.
Higher crude oil prices also weighed on investor sentiment. Following a rise in U.S. crude oil futures, concerns spread that companies' raw material and transportation costs would increase, intensifying fears of deteriorating earnings. This worsened sentiment across the market and reinforced the broad-based decline.
The article as a whole attributes the decline to multiple overlapping factors, including trends in emerging markets and the significant contribution of individual stocks. The prevailing view remains that future market developments will depend on close monitoring of long-term interest rates, crude oil prices and leading indicators of the global economy.