The JPX-Nikkei Index 400 fell for a second straight session on the 24th, closing at 36,592.65, down 97.82 points from the previous day. Rising long-term interest rates heightened concerns about stretched equity valuations, prompting selling in heavy industrial stocks.
The JPX-Nikkei Index 400 ended lower for a second straight session on the 24th at 36,592.65. It fell 97.82 points from the previous day, reflecting a growing sense of adjustment ahead of the weekend. Market participants adopted a cautious stance in response to market conditions.
In the domestic bond market, the long-term interest rate rose as high as 3.075%, reaching its highest level in about 30 years, since August 1996. Views spread that rising interest rates would increase companies’ financial burdens, providing a catalyst for selling in the equity market.
As concerns about relative overvaluation became more prominent, the impact was felt not only in stocks with high PERs but also in heavy industrial stocks such as electric power and gas utilities and steelmakers. Some market observers pointed to the possibility that rising interest rates were putting pressure on valuations across the equity market.
By stock, Recruit Holdings declined, as did Toyota Motor. Advantest and TDK, meanwhile, rose.