This week's quick stock market overview points to a pullback. Japanese stocks moved sluggishly against a backdrop of rising long-term interest rates and higher crude oil prices. The Nikkei average tested lower levels in the afternoon, falling to ¥65,020.94, while developments in US markets also had an impact.
In this week's market overview, the Nikkei average stood at ¥65,020.94 in the afternoon, up ¥806.46 from the previous day, for a gain of 1.26%. The rise in long-term interest rates and higher crude oil prices were cited as the main factors, resulting in generally weak market conditions.
In US markets, NY crude oil futures edged lower. The move was attributed to an interplay between supply risks stemming from the situation in the Middle East and expectations of US rate hikes. Meanwhile, NY gold futures fell, with reports saying that expectations of a rate hike resurfaced after the US August employment report came in stronger than expected.
By investor category, foreign investors were net sellers for the second consecutive week in the fourth week of August, while individual investors were net sellers for the first time in two weeks. The view was that these developments weighed on the market overall.