The Nikkei Average briefly fell below the 63,000 level in Tokyo trading on the 11th, with the decline exceeding 2,000 points. Higher oil prices and rising US interest rates weighed on investor sentiment.
The Nikkei Stock Average fell below the 63,000 level at one point in Tokyo trading on the 11th, declining more than 2,000 points from the previous day. Against the backdrop of rising crude oil futures, the front-month WTI contract temporarily reached the 104-dollar level, prompting selling on concerns about Japan's resource-intensive, import-dependent economy.
The 10-year US Treasury yield, a benchmark for long-term interest rates in the US bond market, rose to the 4.9% level. As bond prices fell, equities appeared increasingly expensive, intensifying selling pressure in the stock market.
The Nikkei Average fell to a closing-level low in roughly a month and a half, its lowest range since late July. Many semiconductor-related stocks were sold, with Advantest, Tokyo Electron and Kioxia Holdings among those falling sharply.
More than 80% of stocks on the TSE Prime Market fell from the previous day, resulting in a broad-based sell-off. The prevailing view was that higher oil prices and rising interest rates had strengthened investors' risk-averse stance.