On the 31st, the Nikkei 225 fell in the afternoon session amid concerns about a rate hike. Selling in semiconductor-related stocks led the decline, while the dollar-yen pair remained soft and attention increasingly turned to the afternoon market direction.
The Nikkei 225 fell back toward the afternoon session, unable to hold its morning level as selling emerged. As concerns about a rate hike intensified following remarks by Federal Reserve Chair Kevin Warsh, selling was particularly pronounced in semiconductor-related stocks, weighing on the market. Among individual stocks, Advantest and Tokyo Electron declined, widening the overall market loss. Supply-and-demand factors at month-end also had an impact, and the market continued to see only a limited recovery.
The dollar-yen pair remained soft, with momentum for dollar buying and yen selling weakening. Some dollar buying emerged in response to remarks by Fed Chair Warsh, but concerns about intervention intensified, keeping overall market movements cautious. The exchange rate traded from the upper ¥159s to the lower ¥160s.
Stocks to watch in the afternoon session included Dynamic Map Platform and Morpho, with 9 stocks at times hitting and remaining at their daily upper price limits. Advantest was the top positive contributor, followed by Tokyo Electron in second place. Meanwhile, semiconductor stocks other than Advantest also came under selling pressure at times. Trends varied across sectors, including electrical equipment and machinery.
As for economic indicators and comments from officials, China’s manufacturing PMI for August was reported at 49.8, versus a forecast of 49.5 and a previous reading of 49.2. Comments from the financial authorities suggested an intention to review trade terms with China, while attention was also focused on the Bank of Japan’s monetary policy decision. Overseas, the G20 meeting of finance ministers and central bank governors and the Shanghai Cooperation Organisation summit are expected to continue.