Stocks: The Nikkei average fell during the morning session, influenced by the escalation of the situation in the Middle East and the decline in US stocks.
October 8, 2024, 11:51 AM GMT+9 (excerpt)
<11:40> The Nikkei average fell during the morning session, influenced by the escalation of the situation in the Middle East and the decline in US stocks.
In the morning session of the Tokyo stock market, the Nikkei average fell 471.65 yen to 38,861.09 yen compared to the previous trading day. Following the decline in the U.S. stock market due to increased tension in the Middle East and rising U.S. long-term interest rates, selling pressure led the way across a wide range of industries. The Nikkei average once again fell below the psychological milestone of 39,000 yen. On the other hand, energy-related stocks such as petroleum performed well due to the rise in crude oil prices.
The Nikkei average started the day with a 311-point decline. The market was weighed down by geopolitical risks, the easing of rate cut expectations from the Federal Reserve, a stronger yen against the dollar, and profit-taking selling. After trading in negative territory for a while, the Nikkei average fell below the psychological 39,000 yen mark, dropping to 38,853.51 yen, a decrease of 479 yen.
In the market, there are voices expressing concerns about inflation reigniting due to the rising crude oil prices and U.S. long-term interest rates in response to heightened tensions in the Middle East, making selling pressure more likely. According to Tomoyuki Miura, Senior Technical Analyst at Mizuho Securities, there are additional headwinds for Japanese stocks, with the persistent strength of the yen adding further downside pressure and making selling more prevalent.
In the morning session of the Tokyo stock market, the Nikkei average fell 471.65 yen to 38,861.09 yen compared to the previous trading day. Following the decline in the U.S. stock market due to increased tension in the Middle East and rising U.S. long-term interest rates, selling pressure led the way across a wide range of industries. The Nikkei average once again fell below the psychological milestone of 39,000 yen. On the other hand, energy-related stocks such as petroleum performed well due to the rise in crude oil prices.
The Nikkei average started the day with a 311-point decline. The market was weighed down by geopolitical risks, the easing of rate cut expectations from the Federal Reserve, a stronger yen against the dollar, and profit-taking selling. After trading in negative territory for a while, the Nikkei average fell below the psychological 39,000 yen mark, dropping to 38,853.51 yen, a decrease of 479 yen.
In the market, there are voices expressing concerns about inflation reigniting due to the rising crude oil prices and U.S. long-term interest rates in response to heightened tensions in the Middle East, making selling pressure more likely. According to Tomoyuki Miura, Senior Technical Analyst at Mizuho Securities, there are additional headwinds for Japanese stocks, with the persistent strength of the yen adding further downside pressure and making selling more prevalent.
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