After crude oil futures rose above $100 per barrel, the Nikkei fell approximately 1,000 points in the morning and recorded a decline of more than 2,000 points at one point. Rising U.S. interest rates also pushed up long-term interest rates, affecting domestic markets.
Crude oil futures rose above $100 per barrel for the first time in three and a half months, and the Nikkei continued to fall from the start of trading. Market attention is shifting to developments in crude oil as an international benchmark and changes in U.S. financial conditions.
The Nikkei was down approximately 1,000 points at the start of morning trading and extended its losses thereafter. The morning session closed down ¥1,801 from the previous day at ¥63,469.
Concerns about a prolonged conflict between the United States and Iran have been cited as a factor behind the rise in crude oil prices, driving WTI futures higher. This triggered a decline in the U.S. stock market and affected the Japanese market as well.
Against the backdrop of rising U.S. interest rates, long-term interest rates in the domestic bond market also rose. Long-term interest rates are once again approaching the 3% threshold.