The Nikkei Stock Average fell for the first time in 6 trading days, closing at ¥65,877.62. It rose as high as ¥67,034.74 in the morning on buying of AI-related stocks, but closed at its low for the day in the afternoon as expectations for higher interest rates weighed.
The Nikkei Stock Average fell 0.73% in Tokyo trading on the 28th, ending at ¥65,877.62. Profit-taking selling prevailed as a reaction to the rapid rise through the previous weekend, resulting in a low close. In the morning, AI-related stocks were well received, and the index rose as high as ¥67,034.74 at one point. Buying targeting interim dividends also supported the market.
By sector, insurance, banks, and electric power and gas rose, while pharmaceuticals, pulp and paper, and mining were notably weaker. The decline in South Korea's KOSPI weighed on investor sentiment and affected sentiment in the Japanese market. Some stocks with a large contribution to the Nikkei maintained their strength at times.
Among individual stocks, Nidec hit its limit down after the dismissal of its president was reported at an extraordinary board meeting. Ibiden fell as a reaction to the buying it attracted the previous week, while Kioxia Holdings was also weak. By contrast, SoftBank Group's share price was stable, and Recruit Holdings, Mizuho Financial Group and Tokio Marine Holdings rose.
This week brings US AI-related events, Micron Technology's earnings announcement and the release of September employment data. Despite the rise in domestic interest rates, the equity market has not suffered a major breakdown, and some expect the underlying strength to remain intact, although a short-term correction is possible.