Against a backdrop of uncertainty over the situation in the Middle East and rising interest rates in the US, the Nikkei average fell sharply to close at ¥64,325. It ended the day down ¥1,889 from the previous session.
Risk-off selling intensified in the Tokyo market against a backdrop of concerns related to US airstrikes on Iran and rising long-term interest rates. The Nikkei Stock Average plunged after opening and ultimately closed down 1,889 yen at ¥64,325. TOPIX fell 100 points to 4,081, while the TSE Growth Market Index also declined for the first time in 3 sessions.
Among individual stocks, Murata Manufacturing fell 5.1% to ¥6,920 and Sumitomo Metal Mining dropped 11.6% to ¥10,035, with selling spreading to some electronic components and metals stocks. ITO EN, meanwhile, rose 8.7% to ¥3,273 following its earnings announcement, renewing its year-to-date high.
Matsuya fell sharply after reports that sales at its Ginza flagship store had declined 11% year on year in August. Kadoya Sesame Mills rose 22.3% to the daily price-limit high, renewing its year-to-date high. Reports that the company was considering options including going private were also cited as a buying catalyst.
The focus going forward will be the August employment report due in the US and earnings trends among semiconductor-related companies, which could determine the strength of any market rebound and the persistence of the decline.