U.S. September CPI exceeded market expectations, reviving expectations for an FRB rate hike. In response, the Nikkei average fell sharply to around ¥64,400 during the morning session.
In the U.S. market, the September consumer price index rose 3.7% year on year, exceeding the 3.6% market forecast and strengthening expectations for another FRB rate hike. Although there had been a period when employment data fell short of market expectations, the CPI result weighed on markets and strengthened investors’ risk-off stance.
In the Tokyo market, the Nikkei average fell sharply from the previous session’s close. After opening at ¥66,880, it extended its decline and ended the morning session near ¥64,400. Selling in AI- and semiconductor-related stocks, including Advantest, SoftBank Group and Tokyo Electron, contributed to the Nikkei’s decline.
Concerns over the financial stability of AI-related companies and a deterioration in the outlook for semiconductor demand also pushed share prices lower. The Nikkei average extended its decline to five consecutive trading days after falling for three days. Market participants continue to closely monitor U.S. economic and interest-rate trends.
The Nikkei average had recovered to the ¥70,000 range in July, but the latest decline has again put it on a weak footing, with the outlook now awaiting further developments.
(This is a summary of the facts stated in the article.)