The Nikkei Average fell sharply for a second straight session in Tokyo trading on 11 September 2026, sinking to around its lowest level in a month. Monetary policy developments in the United States and Japan are expected to be the main focus this week, while rising oil prices and interest-rate trends could also influence the market.
The Nikkei Average closed at ¥64,011.34, down ¥1,259.61 from the previous day, marking its lowest level in roughly a month, since 4 August. The decline was driven by the fall in U.S. markets the previous day and renewed risks surrounding the Middle East.
Fears over turmoil in the Middle East pushed New York crude oil futures into the ¥104-per-barrel range, near their highest level since mid-May. Market expectations regarding when fighting between the United States and Iran will end were also cited as a factor.
U.S. long-term interest rates rose to elevated levels as stronger-than-expected growth in August’s U.S. PPI heightened concerns about a resurgence in inflation. On 11 September, Japan’s long-term interest rate also hovered around the 3% threshold. AI- and semiconductor-related stocks, including Advantest and SoftBank Group, also came under selling pressure.
This week, attention is expected to focus on the U.S. FOMC meeting on 15–16 September and the Bank of Japan’s monetary policy meeting on 17–18 September. Market attention is also likely to center on press conferences by Fed Chair Warsh and Bank of Japan Governor Ueda.