Image Credits: mainichi.jp
The Nikkei Stock Average continued its downward trajectory on September 11th, marking its seventh consecutive day of decline. The index closed at 35,619.77 yen, down 539.39 yen (1.49%) from the previous day, reaching its lowest level since August 9th.
The yen’s temporary rise to the 140 yen range against the dollar exacerbated the sell-off, particularly impacting export stocks. The market was further pressured by perceptions from a U.S. presidential debate, where Democratic candidate Kamala Harris was viewed as having an edge over Republican incumbent Donald Trump. The speculation that Trump might lose, potentially affecting his promise of lower corporate tax rates, fueled concerns and led to increased selling by overseas speculators.
The market decline was compounded by anticipated shifts in U.S. monetary policy. The Federal Reserve is expected to lower interest rates at the upcoming Federal Open Market Committee meeting on September 17th and 18th. In contrast, Bank of Japan board member Junko Nakagawa hinted at possible adjustments to Japan’s monetary easing if economic conditions warrant, causing the yen to briefly strengthen. However, this strengthening of the yen, which peaked at 140.70 yen per dollar, eventually led to selling by companies like Toyota concerned about export profitability, further pressuring the stock market.
The Tokyo Stock Price Index (TOPIX) and the JPX Prime 150 Index also fell, marking six consecutive days of decline. The TOPIX closed at 2530.67, down 45.87 points (1.78%), while the JPX Prime 150 Index ended at 1130.89, down 17.55 points (1.53%).
The total trading value on the Tokyo Stock Exchange Prime reached 4.1993 trillion yen with a trading volume of 1.93972 billion shares. Out of the 1,642 stocks listed, 1,523 fell, accounting for 90% of the total, while only 105 stocks rose and 14 remained unchanged. As the market trends downward, speculative selling has intensified, particularly in stock index futures and options.