Nikkei average drops by more than 3,100 yen at one point, with interest rate hike expectations reignited due to US inflation concerns

At the Tokyo stock market on the 15th, the Nikkei average stock price was at the 64,500 yen level, more than 3,100 yen lower than the previous day's closing price. This is the first time in about two weeks that the price has fallen below 65,000 yen during trading hours since September 29th. This continued the trend of declines in major stock indexes in the U.S. market the previous day.

In the United States, the Consumer Price Index (CPI) for September announced on the 14th increased by 3.7% compared to the same month last year, exceeding market expectations (3.6%), increasing expectations for an interest rate hike by the US Federal Reserve (Fed). Expectations for an interest rate hike had receded as September's employment statistics were significantly lower than market expectations, but rose again in response to the CPI results. Raising interest rates tends to depress the economy and work against stock prices. Fears of prolonged inflation led to a sell-off centered on semiconductor stocks, and all major U.S. stock indexes fell.

At the Tokyo stock market on the 15th, the Nikkei average opened at 66,880 yen, 863 yen lower than the previous day's closing price. Since then, the decline has widened. A wide range of stocks, mainly those related to artificial intelligence (AI) and semiconductors, are being sold, including Advantest, SoftBank Group, and Tokyo Electron, which have a large impact on Nikkei 225 price movements.

On the 6th, the Nikkei average returned to the 70,000 yen level, a milestone for the first time in three months. However, by the 14th, the price had fallen for five consecutive days, and the decline during this period had widened to nearly 3,000 yen.