Growing expectations of a US rate hike dampened investor sentiment, sending Tokyo stocks sharply lower. At the morning close, the Nikkei average stood at ¥65,361.60, down ¥1,043 from the previous day, while TOPIX fell sharply to 4,128.76.
In the Tokyo market's morning session, the Nikkei average remained sharply lower, standing at ¥65,361.60 at the morning close, down ¥1,043 from the previous day. TOPIX was down 17.95 points at 4,128.76, while trading volume was 946.38 million shares and trading value was ¥3.5262 trillion. Profit-taking spread across AI and semiconductor-related stocks, putting selling pressure on the market as a whole.
At 10:10 a.m., the Nikkei average temporarily fell to as low as ¥64,832.10. Growing expectations of a US rate hike following remarks by the Federal Reserve chair at the Jackson Hole symposium pushed up US and Japanese interest rates, weighing on the market. Semiconductor-related stocks continued to decline, with Advantest down about 7% and Tokyo Electron also down about 4%.
The market opened sharply lower, with the Nikkei average beginning trading at ¥65,668.51, down ¥737.05 from the previous day. Major stock indexes broadly extended the declines in US markets.