The Nikkei average briefly fell more than ¥1,500 in the Tokyo stock market on 31 August. The backdrop was rising expectations of a US rate hike and the 28 August decline in the NY market, with notable selling in semiconductor-related stocks immediately after trading began.
The Nikkei average briefly fell more than ¥1,500 in the Tokyo market at the start of the week. Against the backdrop of movements in the US market, expectations of a rate hike grew in the Japanese market as well, and selling orders led trading.
According to reports, expectations of a rate hike rose in the US on 28 August following a speech by Chair Warsh, affecting the Tokyo market amid concerns about a global rise in interest rates. Investors became wary of the impact on corporate earnings, prompting broader selling.
Selling reportedly led from immediately after the start of trading, particularly in semiconductor-related stocks. The Tokyo market followed the decline in the NY market, which also weighed on prices.
The latest decline was reportedly driven by expectations for the Federal Reserve's monetary policy and movements in the US market, which also affected individual stocks.