Tokyo stocks lacked direction on the morning of the 3rd. Buying emerged as the rise in long-term interest rates paused, and the Nikkei 225 briefly moved higher. At the same time, persistent concern over continued inflation prompted some selling.
The Nikkei 225 edged lower from the previous day on the morning of the 3rd in the Tokyo stock market, although it briefly extended its gains to more than ¥300. As of 10:00 a.m., it stood at ¥64,247.44, down ¥78.20 from the previous day, while the TOPIX was at 4,107.56 points, up 25.96.
Concerns over the outlook for U.S. interest rates receded, and the decline in U.S. long-term interest rates put downward pressure on long-term interest rates in Japan. One interpretation was that concerns over rising funding costs weighing on corporate earnings had eased.
Uncertainty over the outlook for the situation in the Middle East continued to weigh on the market. Concerns that persistently high crude oil prices and rising prices could lead to an economic slowdown also weighed on market sentiment. These factors were cited as reasons the Nikkei 225 lacked direction.
The market is monitoring developments in Japan and overseas while watching both interest rates and inflation. Some expect interest-rate movements to be the market's focus in the short term.