The Nikkei 225 fell approximately ¥1,889 from the previous day in Tokyo trading on the 2nd, while funds flowed into defensive stocks amid a broad-based sell-off. WTI briefly rose above $90 per barrel as higher oil prices heightened investor concerns.
The Nikkei 225 fell ¥1,889 from the previous day to ¥64,325 in Tokyo trading on the 2nd, extending its losing streak to 3 sessions. Stocks were sold mainly among AI and semiconductor-related names, resulting in a broad-based decline in which most issues on the Tokyo Stock Exchange Prime Market fell.
WTI crude oil futures briefly rose to the $92-per-barrel range. The move was driven by the exchange of attacks between the US and Iran, while supply concerns and geopolitical risks have continued to heighten market vigilance even after the collapse of the memorandum framework in June. Some market participants believe that a period of calm will be difficult to achieve for the time being.
The possibility that China could act as an intermediary at a summit in late September has been cited as a factor that could improve US-China relations, while others say mediation would be difficult given China’s stance favoring Iran. With the US midterm elections approaching in November, some market participants want to assess developments in Iran before taking a view.
Defensive stocks are increasingly providing support for the market, and some observers expect room for a rebound in NTT, SoftBank, Daiichi Sankyo, Shionogi, Kikkoman, Nissui and Kewpie. Broadcom’s earnings and US economic data are also scheduled to be released tonight.