Selling continued from the opening of the Tokyo stock market, and concern spread against the backdrop of rising interest rates in Japan and the US. The Nikkei average opened down ¥426 from the previous day at ¥65,885.
Selling led the Tokyo market at the opening, with the Nikkei average starting down ¥426 from the previous day at ¥65,885. Against a backdrop of weak European equity markets and declines in US stocks, investors grew more risk-averse. Rising crude oil prices and upward pressure on US long-term interest rates heightened awareness of elevated stock valuations.
While concern over rising long-term interest rates intensified and investors remained reluctant to buy, TOPIX had shown strength through the previous day by extending its winning streak to 8 sessions. This was seen as indicating that appetite for individual stocks had not waned. There was also a view that the Nikkei average could find support from buying on dips once selling subsides.
In the US market, the semiconductor sector performed firmly, attracting attention as a factor for the day. It was noted that this could affect market developments going forward.