The Nikkei 225 extended its sharp decline in the morning session, with the market falling broadly on declines in U.S. markets, heightened geopolitical risks, higher oil prices and rising long-term interest rates. The index is expected to remain near its lows in the afternoon session.
The Nikkei 225 ended the morning session down ¥1,019.91 at ¥65,195.43, with the Japanese market posting a sharp decline. The market was weighed down by concerns over the steep falls in the Dow and Nasdaq in the U.S., as well as higher oil prices and rising long-term interest rates.
Selling spread across a broad range of stocks shortly after the Nikkei 225 opened, resulting in across-the-board losses. With concerns over heightened geopolitical risks and interest-rate trends persisting, the market continued to see only limited rebounds.
Among individual stocks, Shionogi, Daiichi Sankyo, Sumitomo Pharma, Itochu, Seven & i Holdings, Keio and Takeda rose. Meanwhile, SoftBank Group, Tokyo Electron, Advantest, TDK, Recruit Holdings and Fast Retailing were among those that fell.
All 33 Tokyo Stock Exchange sectors declined, with notable losses in nonferrous metals, glass and stone products, and transportation equipment. Declines were limited in pharmaceuticals, insurance and marine transportation.
The Nikkei 225 is expected to remain near its lows in the afternoon session, with some market participants expecting the index to continue searching for a bottom after falling below its 75-day moving average in the ¥66,600 range. Domestic long-term interest rates are also expected to continue rising, making investors more likely to refrain from buying.