The Nikkei Average fell for the first time in 3 sessions. Hankyu Hanshin Holdings expanded its share-buyback limit, while automaker stocks weakened as persistently high interest rates were seen as a drag.
In the Tokyo market on the 2nd, the Nikkei Average fell for the first time in 3 sessions, closing at ¥68,309, down ¥647 from the previous day. Despite gains in US stocks, domestic profit-taking weighed on the market, and the decline at the open exceeded ¥600. The market continued to lack direction thereafter, with selling around ¥68,700 and buying around ¥68,100, but the decline widened.
Hankyu Hanshin Holdings announced during afternoon trading that it would increase the maximum number of shares in its buyback from 7.5 million to 12 million and raise the purchase amount from ¥3 billion to ¥5 billion, while extending the purchase period to 31 March next year. The move, aimed at improving capital efficiency, encouraged buying in the market.
Automaker stocks were weak, and the transport equipment sector index temporarily fell more than 2%. Although no specific catalyst was identified, concerns were cited over portfolio adjustments by institutional investors and the possibility that high interest rates would increase the burden of auto loans.
Energy-related movements were also seen during the day, including movements linked to Inpex and Nippon Policy. WTI crude oil futures rose to $92.87. Trading value in the Tokyo market was reported to be around ¥8.29 trillion.