Higher crude oil prices and rising long-term interest rates weighed on the market amid escalating tensions in the Middle East, sending the Nikkei 225 sharply lower at the close. The market remained cautious ahead of the release of U.S. CPI data.
The Nikkei 225 fell sharply on the Tokyo market on the 11th, closing at ¥64,011.34, down ¥1,259.61 from the previous day. Estimated trading volume was 2.37 billion shares. Crude oil prices surged as tensions in the Middle East escalated, prompting widespread risk-off sentiment.
The Nikkei 225 initially fell to ¥63,208.63, dropping below ¥64,000 during trading for the first time in about a week. It subsequently pared its losses amid cautious sentiment ahead of the U.S. CPI release and movements in after-hours futures, recovering to ¥64,065.43 in the afternoon session.
On the Tokyo Stock Exchange Prime Market, more than 950 issues declined, accounting for over 60% of the total. By sector, insurance, marine transportation, transportation equipment and mining advanced, while nonferrous metals, electric appliances, oil and coal products, and services declined.
Among individual stocks, Kyocera, Konami Group, Bandai Namco Holdings and Toyota Tsusho rose, while Advantest, SoftBank Group, Tokyo Electron and Kioxia Holdings were sold, with several stocks standing out for their downward pressure on the Nikkei 225. The market remained alert to U.S. CPI data and news flow related to the situation in the Middle East.
Heading into the weekend, attention will need to remain focused on developments in the Middle East as well as U.S. news flow, and the outlook is for the market to take different directions depending on upcoming factors.