The Nikkei fell for a second consecutive session on the morning of the 2nd, at one point declining more than 1,800 points. Selling spread across high-tech stocks bought on expectations of future growth against a backdrop of rising long-term interest rates, weighing on the market.
The Nikkei Stock Average was down approximately ¥1,414 from the previous day in the morning session, trading at ¥64,801.26. The Tokyo Stock Price Index (TOPIX) also fell by approximately 68 points.
The yield on newly issued 10-year Japanese government bonds, a benchmark for long-term interest rates, rose into the 3% range as the period of rising interest rates continued.
As a result, high-tech stocks that had previously been bought on expectations of strong growth were sold, weighing on the broader market and contributing to its decline.
The view is spreading that market trends may fluctuate depending on interest rate movements.