The Nikkei Stock Average opened the week lower but narrowed its decline during the session. In the U.S. market, the Dow edged down as expectations of higher interest rates spread, while comments from the FRB sent ripples through markets and briefly pushed the yen into the ¥160-per-dollar range.
The Nikkei Stock Average fell back in Monday's market, closing at ¥66,311, down ¥93 from the previous Friday. It initially fell by more than ¥1,500, but selling pressure subsequently eased and the decline narrowed. Semiconductor-related stocks continued to sway the market as a whole.
In the U.S. market on the previous Friday, the Dow edged lower as expectations of a rate hike grew. FRB officials expressed concern about inflation at the Jackson Hole meeting, prompting markets to increasingly price in an early rate hike. Selling of bonds, selling of equities and dollar buying spread across markets, sending the yen back into the ¥160-per-dollar range.
In Japan, the indices remained volatile under the influence of semiconductor stocks, but both the TOPIX and Prime Index posted their 8th consecutive gain. The 10-year government bond yield rose to a level not seen in approximately 30 years, but the earnings-driven market remains firm. The report was presented as the view of the Stock Data Bank editorial team.