【Fuji Tomi】Nikkei 225 drops for the first time in three trading days amid aversion to geopolitical risks
The Nikkei 225 stock average fell back and finished trading at 18,747.87 yen, down 50.01 yen (0.27%) from the previous day. A cautious mood among buyers emerged due to escalating geopolitical risks involving North Korea.
There were reports that North Korea may soon conduct a ballistic missile launch test, and that allied countries such as the United States and Australia have begun preparations for intercepting missiles. It was also said that North Korea might conduct a ballistic missile launch test around the 15 days before its leader’s birthday, and that the U.S. and Australian militaries are reportedly monitoring North Korea's actions jointly.
Concerns over geopolitical risks sparked yen appreciation and dollar depreciation, leading to selling pressure mainly among export-oriented large-cap stocks and weighing on the index. With interest rates on the decline, mega-banks fell further, but by the close, they receded from the lows due to expectations of the Bank of Japan’s ETF purchases.
TOPIX also fell, finishing 4.55 points (0.30%) lower at 1,495.10. The total trading value on the Tokyo Stock Exchange First Section was 1.8634 trillion yen, with a total traded volume of 1,691.17 million shares. The number of declining issues on the First Section was 1,384, rising issues were 504, and unchanged were 124.
