The Nikkei Average fell ¥1,121 to ¥68,098 at the morning close in Tokyo trading on the 18th, as globally rising interest rates prompted selling of real estate stocks. Amid a shift toward an earnings-driven market, changes in the interest-rate environment heightened market caution.
The Nikkei Average fell ¥1,121 to ¥68,098 by the morning close in Tokyo trading on the 18th. Expectations for an earnings-driven market, supported by strong results the previous day, were dampened by the impact of rising interest rates.
The yield on newly issued 10-year Japanese government bonds, the benchmark for long-term interest rates in the domestic bond market, rose temporarily to 2.945%, weighing on the market. Selling of real estate stocks consequently spread, becoming a drag on the broader market.
Major real estate companies hit new year-to-date lows, while some insurance stocks also traded lower. Concerns that higher interest rates could affect the earnings environment again came to the fore.