Japanese bonds rose and long-term interest rates fell on the 26th. Crude oil declined on expectations of easing tensions in the Middle East, while the Nikkei average extended its losses. Reports including coverage by The New York Times were also cited as market factors.
The Nikkei average fell on the 26th. Meanwhile, bond futures and medium-term bonds rose, and interest rates declined. Expectations of easing tensions in the Middle East prompted a fall in crude oil prices. The New York Times' report that the US government was preparing to return diplomats to embassies also had an impact.
September contracts for long-term Japanese government bond futures rose temporarily. Market participants view lower interest rates in Europe and the United States as a factor behind the rise in Japanese government bonds and are also closely watching future interest-rate trends.
AI-related stocks stood out for their declines in the equity market, with Tokyo Electron, Advantest and Murata Manufacturing among those sold. Meanwhile, improving conditions in the Middle East, lower crude oil prices and falling US interest rates provided support for other sectors. The TOPIX also briefly edged higher.
Market participants are watching speeches by Deputy Governor Himino (氷見野) on the 27th and the Fed chair on the 28th, with attention focused on medium- to long-term interest-rate trends amid expectations of further rate hikes.