The Nikkei 225 fell sharply for a second consecutive session in Tokyo trading on 19 August, closing at 65,326.42, down ¥2,134.31 from the previous day. The decline briefly exceeded ¥2,300, with concerns over the situation in the Middle East reportedly contributing to the surge in sell orders.
The Nikkei 225 fell sharply for a second consecutive session in Tokyo trading on 19 August. It closed at 65,326.42, down ¥2,134.31 from the previous day, and at one point during the session the decline exceeded ¥2,300. Some analysts attributed the market’s moves to heightened investor risk aversion.
Concerns about the outlook for the situation in the Middle East have been cited as a factor behind the increase in sell orders. Reports said that, in addition to economic indicators and corporate earnings, rising geopolitical risks constrained the flow of investment funds.
The chain of risk factors in this episode has led to views that the adjustment phase across the equity market could continue. Investors are watching developments in the news and the course of international affairs.