Nikkei 225 Declines

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Nikkei 225 Declines

Nikkei 225 Declines By 1.87%, Most Japan Stocks Turn Lower

The Nikkei 225 index has shed around 1.87% of its value on Wednesday with power, communication, and automobile sectors leading the way.

The top performer for the day was Obayashi Corp. which gained 80 points or .41%. Similarly, Fujikura Ltd. gained 140 points (2.64%) while the Taisei Corp jumped by 2.40%.

Most Japanese Stocks Declined

Lasertec Corp (TYO:6920) was the session's worst performer, dropping 13.44% or 3,440.00 points to close at 22,150.00. Tokyo Electron Ltd. (TYO:8035) fell 9.19%, or 2,460.00 points, to 24,310.00, while Dainippon Screen Mfg. Co., Ltd. (TYO:7735) fell 9.34%, or 1,040.00 points, to finish at 10,100.00.

Over all, the number of declining stocks was higher than the stocks which closed higher. Over all, 2537 stocks declined while 1009 stocks moved higher. Around 294 stocks closed the Wednesday session unchanged.

And if we look at the volatility in the Nikkei index, it remains the same. The Nikkei Volatility index remained unchanged at 28.67, with a 0% change for the day.

Elsewhere, the crude oil (November) contract is trading at $70.78 with 0.20% change for the day. Meanwhile, Brent's (December) contract is trading around $74.41 with 0.22% gains for the day.

Similarly, the Gold Futures (December) is trading at $2690 with 0.43% gains for the day. As for the USD/JPY, it is trading around 149.21 with 0.01% gains.

Meanwhile, the EUR/JPY is trading at 162.29 with -0.13% gains for the day. This shows that the USD is gaining against the JPY while the EUR lost its value against the JPY.

Overall, it seems that the Nikkei 225 will likely experience more downside ahead as the BoJ is now on the edge of more rate hikes.

The Nikkei 225 has been enjoying decades of low interest rates which allowed it to reach record highs. Now, that the policy is being normalized, the Nikkei 225 will likely come under pressure.

Also, the timing of the rate hikes is not ideal as the rest of the world is moving into era of lower rates.

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