The Nikkei Average fell drastically and continued to fall for 3 days. The forward market transaction was closed at 37974.47 yen (estimated turnover of 830 million shares), 582.40 yen lower (-1.51%) compared to the previous day.
The US stock market declined on the 29th. The Dow average closed at 38441.54 dollars (-1.06%) lower by 411.32 dollars (-1.06%), the Nasdaq closed at 16920.58, which was 99.30 points lower (-0.58%), and the S&P 500 closed at 5266.95, which was 39.09 points lower (-0.74%). It fell after being close to sales that were wary of rising long-term interest rates. In response to the sluggish results of 7-year bond bidding and the Regional Federal Bank Economic Report (Beige Book), they were sold further when interest rates rose further. The NASDAQ was also pushed by profit-taking sales from near record highs, and the market price remained soft throughout the day and ended.
In response to the depreciation of US stocks, the Tokyo market began trading with a selling advantage. After the Nikkei Average started with a drop of over 400 yen from the previous day, sales consolidated into 225 futures due to rising long-term interest rates, and the decline widened. It fell to 37617.00 yen at one point to the level it had been since 4/26. The decline narrowed after a round of sales, but the weakening of the Nikkei Average was conspicuous compared to TOPIX due to the impact of the decline in high-value semiconductor stocks.
Among stocks adopted by the Nikkei Average, the semiconductor-related Advantest ＜6857＞ fell sharply, and Tokyo Electron ＜8035＞ and Renesas Electronics (6723) also declined. In addition, Mitsubishi Electric (6503), Nissan Chemical (4021), FANUC (6954), and SoftBank Group (9984) were sold.
Meanwhile, GS Yuasa ＜6674＞ was bought based on positive reports from securities companies, and regional bank stocks such as Chiba Bank ＜8331＞, Fukuoka Financial Group ＜8354＞, and Resona Holdings＜8308＞ continued to rise in response to rising interest rates. Additionally, Sharp ＜6753＞, Takashimaya ＜8233＞, and Otsuka Holdings ＜4578＞ were bought.
By industry, while mining, wholesale, non-ferrous metals, electrical equipment, securities/commodity futures trading businesses, etc. declined, only 5 sectors rose, pulp/paper, warehousing/transportation-related businesses, and other products, banking, and textile products.
The upward trend continues, with yields on new 10-year government bonds, which are indicators of long-term interest rates, temporarily rising to 1.100%. Observations that the Bank of Japan will raise interest rates in July have also surfaced, and the bond market is speculatively ahead. In the stock market, it is a support material for financial stocks such as banks and insurance, but rising interest rates, mainly growth stocks such as high-tech, are selling material, and a negative impact is ahead of the Nikkei Average. There seems to be a slight rebound against the sharp fall in the morning in the backstage of the Tokyo market, but TOPIX rebalance will be implemented in a big close. Since supply and demand events are ahead, it seems that movements that actively pick up attention can be refrained.