The Nikkei 225 fell for a second straight day on 19 August 2026 in the Tokyo stock market, closing at ¥65,326.42, down ¥2,134.31 from the previous day. The decline was attributed to uncertainty over the situation in the Middle East and rising interest rates worldwide, while Nomura Securities' Okazaki Kohei (岡崎 康平) explains the outlook.
On 19 August 2026, the Nikkei 225 fell for a second straight day in the Tokyo stock market, closing at ¥65,326.42, down ¥2,134.31 from the previous day. Uncertainty over the situation in the Middle East remains, while interest rates continue to rise worldwide.
While the market is increasingly pricing in a Bank of Japan rate hike in September, AI and semiconductor-related stocks have also shown weakness at times, and concerns over geopolitical risks are said to be affecting stock price movements.
As to whether this could bring a repeat of the sharp stock market decline in summer 2024, some view the current situation as a short-term correction, but do not consider a repeat highly likely at this stage over the longer term. Progress in Japanese and US corporate earnings and a easing of concerns suggest a process of near-term improvement.
Future risk factors include US foreign policy ahead of the midterm elections and changes in the Bank of Japan's policy stance. The direction of the market could depend on policy management after the September meeting.