Stocks: The morning Nikkei average continued to decline, Interest rates: The morning government bond futures declined.

At 11:33, the morning Nikkei average continued to decline, with Nvidia's earnings prompting selling reactions and a focus on AI-related stocks.
In the morning session of the Tokyo stock market, the Nikkei average fell by 319.12 yen to 30,833.22 yen compared to the previous trading day. The U.S. semiconductor giant Nvidia, which drew attention in the market, fell in after-hours trading following its earnings announcement, leading to a lackluster performance in related domestic stocks. The yen's appreciation direction acted as a headwind for export-related stocks, while there was also a noticeable interest in scouting for AI-related stocks.

At 11:14, government bond futures fell, with a long-term interest rate of 1.08% adjusting before the 20-year bond auction.
Government bond futures for the central limit month of December fell by 11 sen to 142.78 yen compared to the previous trading day, closing the morning session at a lower price. The yield on newly issued 10-year government bonds (long-term interest rates) rose by 1.5 bps to 1.080%. Due to the rising U.S. interest rates and adjustment pressure ahead of the 20-year bond auction, yen bonds were predominantly sold.
Government bond futures saw selling pressure from early morning, following the trend of rising U.S. interest rates from the previous day.
In addition to speculation about the Bank of Japan's additional rate hikes, there is a cautious stance likely until the details of next year's government bond issuance plan are clarified, with a tendency to wait and see. "Overall, it seems that the upside is heavy compared to the external environment," said Katsutoshi Inarumi, Senior Strategist at Sumitomo Mitsui Trust Asset Management.