The Nikkei fell sharply on the 11th, recording a decline of more than ¥2,000 during the 9 a.m. hour. Higher oil prices and rising US interest rates weighed on the market at the same time.
The Nikkei fell sharply in Tokyo trading on the morning of the 11th. It was a new SQ calculation date, and the SQ value came to ¥63,039.49, approximately ¥2,200 below the previous closing level. Higher oil prices and rising interest rates simultaneously weighed on investor sentiment.
In the US market the previous day, the three major indexes fell for a fourth consecutive trading session. In addition to tensions in the Middle East, reports said that Saudi Arabia's crude oil production in August had fallen to its lowest level since 1990, sending North Sea Brent futures sharply higher by 6.3%.
In the United States, some market participants believed that the scale of buying back long-term Treasuries had fallen short of expectations, and the US 10-year Treasury yield briefly rose to nearly 4.95%. Concerns about a renewed acceleration in inflation due to higher oil prices, together with the impact of rising interest rates, increased the sense that equities were overvalued.
During the day on the 11th, selling dominated across a broad range of stocks from the open. High-priced stocks, including AI and semiconductor names, weighed on the index, while investors increasingly stayed on the sidelines ahead of the release of US CPI data and next week's FOMC and Bank of Japan policy meetings. In foreign exchange trading, the yen has moved weaker toward the mid-¥154 range per dollar.