Tokyo stocks (midday close) - sharp decline continues as global interest rate rise concerns trigger broad-based selloff

The Nikkei Stock Average closed the morning session on the 2nd down 1,742.18 points, or 2.62%, at 64,473.16, extending losses. Prime Market morning volume was an estimated 1.12 billion shares, with turnover estimated at 4.1 trillion yen. Advancing issues numbered 86, while declining issues totaled 1,449, with 20 unchanged.

Risk aversion accelerated in Tokyo morning trading, with heavy selling concentrated in AI and semiconductor shares. Declining issues accounted for over 93% of all listed stocks in a broad-based selloff. As renewed U.S. airstrikes rekindled Middle East geopolitical concerns, crude oil prices surged, fueling inflation fears. With global interest rates rising sharply, equity market sentiment turned heavily bearish. A drop of over 3% in South Korea's KOSPI also weighed on sentiment, with the Nikkei at one point falling nearly 2,000 points.

Among individual stocks, semiconductor equipment makers fell sharply, including ADVANTEST CORPORATION <6857> and Tokyo Electron Limited <8035>, while SoftBank Group Corp. <9984> also retreated. MLCC stocks such as TAIYO YUDEN CO., LTD. <6976> and Murata Manufacturing Co., Ltd. <6981> were also lower. Recruit Holdings Co., Ltd. <6098> and Sumitomo Metal Mining Co., Ltd. <5713> saw significant declines, while megabanks including Mitsubishi UFJ Financial Group, Inc. <8306> were also sold. Nittetsu Mining CO., LTD. <1515>, Kyowa Kirin Co., Ltd. <4151>, and MATSUYA CO., LTD. <8237> plunged. On the upside, DAIICHI SANKYO COMPANY, LIMITED <4568> held firm. ITO EN, LTD. <2593> surged, KOSHIDAKA HOLDINGS Co., Ltd. <2157> drew buying interest, and Sumitomo Pharma Co., Ltd. <4506> showed resilience.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.