In a sharply lower Tokyo market, the Nikkei 225 suffered a sharp second consecutive decline against a backdrop of higher crude oil prices and rising long-term interest rates. The dollar remained weak against the yen, trading in the latter ¥159 range.
Tokyo stocks fell across the board following the previous day's decline in U.S. stocks and worsening conditions in the Middle East. The Nikkei 225 fell ¥1,889.70 from the previous day to close at ¥64,325.64, while the TOPIX fell 100.26 points to 4,081.60. Selling prevailed across a broad range of stocks, resulting in a sharp decline in share prices on the Prime Market. The decline in South Korea's Korea Composite Stock Price Index (KOSPI) also weighed on the market.
【Tokyo Foreign Exchange】The dollar remained weak against the yen toward the close, in the latter ¥159 range, at ¥159.69-¥159.69 as of 5 p.m. The euro moved sideways against the dollar and was weak against the yen.
【Tokyo Bonds】The yield on newly issued 10-year Japanese government bonds, the benchmark for long-term interest rates, rose 0.020 percentage point to 3.010%. Bond futures fell for the fifth consecutive session, with the price of the active contract closing at ¥125.32. The yield briefly reached 3.015%, its highest level in approximately 30 years.
【Tokyo Crude Oil, Gold and Statistics】Crude oil futures rose for the fifth consecutive session amid tensions in the Middle East. The settlement price for the active contract of Dubai crude oil futures rose ¥920 from the previous day to ¥77,970. Trading became active at times as movements in the U.S. market and the weaker yen provided additional support, but gains narrowed toward the close as the yen turned higher. Prices are expected to remain volatile depending on developments in the New York market.