U.S. markets fluctuated sharply from 7 to 9 September under the impact of heightened tensions in the Middle East, higher crude oil prices, a stronger dollar and rising interest rates. In Japanese stocks, expectations of a Bank of Japan rate hike and higher crude oil prices drove the yen higher, weighing on the market.
The Dow Jones Industrial Average closed at 52,786 on 8 September, down approximately 1.17% from the previous day, and at 52,380 on 9 September, down approximately 0.76%, as rising crude oil futures and worsening conditions in the Middle East dampened investor sentiment. Semiconductor-related stocks attracted buying on such factors as the announcement of a supply of AI semiconductors for AWS, while other stocks were sold.
In the crude oil market, front-month WTI futures rose to approximately the high-$94 range on 8 September and approximately the high-$96 range on 9 September. Escalating tensions in the Middle East and the resulting concerns over energy supplies drove crude oil prices higher and also affected movements in long-term U.S. Treasury yields.
In the Japanese market, the Nikkei 225 rose approximately ¥1,378 from the previous day to ¥66,399 on 7 September, fell approximately ¥1,130 to ¥65,269 on 8 September, and fell ¥126 to ¥65,142 on 9 September, moving up and down over the 3-day period. The yen also strengthened, prompting selling in export-related stocks, while some stocks, including SoftBank Group, supported the Nikkei.
In the Chinese stock market, the Shanghai Composite entered different phases on 7, 8 and 9 September, amid expectations of government economic measures including capital strengthening. It was reported that the Ministry of Finance would issue ¥30 billion in special government bonds and inject capital into 8 state-owned banks and insurers.