The Nikkei Stock Average fell sharply from the start of trading, dropping below ¥65,000 after falling approximately ¥1,800 at one point. In addition to yen depreciation and rising long-term interest rates, the impact of the situation in the Middle East and falling bond prices reportedly coincided on the same day.
The Nikkei Stock Average fell from the start of trading, breaking below the ¥65,000 level. More than 90% of stocks declined, and the drop exceeded approximately ¥1,800 at one point.
The factors cited included long-term interest rates rising into the 3% range for the first time in 30 years amid growing expectations of a Bank of Japan rate hike, as well as higher crude oil futures prices resulting from tensions in US-Japan relations over the situation in the Middle East.
In the foreign exchange market, the dollar was bought amid risk aversion, and the yen-weakening trend continued. Market participants said, “There are no factors supporting the market today.”
The decline is said to have resulted from the combined impact of factors including yen depreciation, rising interest rates and higher oil prices, with attention focused on the Nikkei's downside levels.