The Nikkei average fell for the first time in 3 trading days, closing the morning session down ¥630 at ¥68,326.72. Reports of increased military buildup in the Middle East dampened investor sentiment, while high crude oil futures prices also weighed on the market.
In the Tokyo stock market on the morning of the 2nd, the Nikkei average fell for the first time in 3 trading days, closing the morning session down ¥630.00 from the previous day at ¥68,326.72. Selling to lock in gains and a reaction to the gains through the previous day spread, with the decline exceeding ¥800 at one point.
The Wall Street Journal reported that the US planned to additionally deploy an aircraft carrier and a force of up to approximately 10,000 personnel to the Middle East. WTI crude oil futures also traded near their highs, dampening investor sentiment. There was speculation that developments in the oil market could spill over into interest rates and equity markets in Japan and the US.
Domestic institutional investors at times focused on selling holdings with unrealized gains as October began, and domestic-demand stocks such as banks and retailers temporarily came under pressure. Meanwhile, buying flowed into AI- and semiconductor-related stocks against the backdrop of firm US semiconductor stocks, and some stocks advanced.
By sector, precision instruments, services, other financing business, pharmaceuticals and air transportation were among the top decliners. Mining and oil and coal products advanced. The Tokyo Stock Price Index, or TOPIX, also fell, closing the morning session down 42.72 points at 4,089.26.