Tokyo stocks close down 1,889 yen as rising long-term rates trigger broad selloff, over 90% of shares decline

Tokyo's equity market was gripped by a full-scale risk-off mood on the 2nd, with the Nikkei Average opening sharply lower and sliding throughout the session. Selling intensified late in the afternoon, with the index closing near its intraday low.

The Nikkei Stock Average finished down 1,889.70 yen from the previous session at 64,325.64, marking a third straight session of losses. Prime Market turnover came to about 2.419 billion shares, with trading value estimated at 8.034 trillion yen. Advancers numbered 100, while decliners totaled 1,436, with 19 stocks unchanged.

Today's Tokyo market was futures-driven from the open, probing lower levels in a volatile session. While U.S. equities posted a third straight session of losses across all three major indexes the previous day, the risk-off trend accelerated in Tokyo. U.S. airstrikes against Iran drove crude oil futures sharply higher, fueling inflation concerns. This added fresh momentum to rising long-term interest rates that have been a source of global concern. The domestic 10-year JGB yield, which crossed the 3% threshold the previous day, climbed further to a session high of 3.015%, weighing on investor sentiment. The Nikkei Average fell nearly 2,000 yen at one point during the session. Decliners exceeded 1,400, accounting for 92% of all listed stocks, while advancers numbered just 100. Only one stock among the top 50 by trading value posted a gain.

Among individual stocks, semiconductor names fell broadly, including ADVANTEST CORPORATION <6857>, Tokyo Electron Limited <8035>, and DISCO CORPORATION <6146>, while Fujikura Ltd. <5803> also retreated. Electronic component makers TAIYO YUDEN CO., LTD. <6976> and Murata Manufacturing Co., Ltd. <6981> extended losses. Recruit Holdings Co., Ltd. <6098> and FAST RETAILING CO., LTD. <9983> fell, while KEYENCE CORPORATION <6861> dropped sharply. Mitsui Kinzoku Company, Limited <5706> was also weak. Nittetsu Mining CO., Ltd. <1515> and Sumitomo Metal Mining Co., Ltd. <5713> tumbled, while Mercari, Inc. <4385>, SEIKO GROUP CORPORATION <8050>, and SHIKOKU KASEI HOLDINGS CORPORATION <4099> posted steep losses.

On the upside, Kioxia Holdings Corporation <285A> held firm to close about flat versus the prior day, while ITOCHU Corporation <8001> managed a modest gain. DAIICHI SANKYO COMPANY, LIMITED <4568> traded steadily, and Seven & I Holdings Co., Ltd. <3382> also held firm. ITO EN, LTD. <2593> stood out with a sharp gain. Infomart Corporation <2492> and Sumitomo Pharma Co., Ltd. <4506> also showed strength, while Aichi Financial Group, Inc. <7389> moved higher.

Source: MINKABU PRESS

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