In Tokyo trading on the 2nd, the Nikkei Average declined for the first time in 3 sessions, closing at ¥68,309.46. Real estate stocks were sold against a backdrop of higher US interest rates, putting downward pressure on stocks including Nomura Real Estate Holdings.
In Tokyo trading on the 2nd, the Nikkei Average declined for the first time in 3 sessions, closing at ¥68,309.46, down ¥647.26 from the previous day. Profit-taking selling spread after the previous day’s rebound, and leading stocks weakened. Across the market, selling also spread to value stocks, including automakers and retailers.
One factor behind the day’s decline was pressure on market sentiment from expectations of further increases in US interest rates. The fact that crude oil futures prices remained near their highs also had an impact, and the Nikkei Average at one point fell by more than ¥800.
By sector, real estate stocks traded lower, with selling spreading to stocks including Nomura Real Estate Holdings. The market reportedly attributed the adjustment in the real estate sector to expectations that high US interest rates would persist.
Attention in the market ahead is expected to focus on fundamentals, including developments in US interest rates, the crude oil market and the sustainability of the economic recovery.