Susanna Riva The Japanese market started the week on a negative note, reflecting the turbulence generated on the West Coast by the latest rises in U.S. Treasury yields and the correction in major Wall Street indices . These factors prompted investors to reassess their risk appetite, penalizing stocks considered most vulnerable to changes in discount rates.
Nikkei down on October 8, 2026: Index falls below 70.000 points
At the opening of the Tokyo session, the Nikkei recorded a loss of 0,26% , closing at 69.855,66 points, 180 points lower than the previous day's closing level. The decline was amplified by capital flight into safer government bonds, a typical phenomenon when bond yields rise and the stock market loses its attractiveness.
Pressure on the technology sector: semiconductors and artificial intelligence
The prices of semiconductor and artificial intelligence- related stocks have fallen significantly. Investors fear that the sustainability of the financing needed for capital-intensive projects is threatened by a more restrictive macroeconomic environment, especially after the rise in global interest rates.
Macroeconomic factors driving the decline: Japanese bonds and oil
At the same time, Japanese government bond yields remain elevated, making the bond market more attractive than equities. This trend, combined with recent profit-taking after two sessions of strong gains, has contributed to slight downward pressure. Furthermore, the surge in oil prices, fueled by tensions between the United States and Iran, is increasing energy costs and negatively impacting the valuations of many companies.
Yen exchange rate trends: October 2 and 8 data
The yen continued its appreciation path. On October 8, it stood at 157,90 against the dollar and 176,70 against the euro, while on October 2, the rate remained stable against the dollar at just over 158 and stronger against the euro at 177,60 . A stronger yen reduces the competitiveness of Japanese exports, but at the same time makes imports and foreign debt more attractive.
Outlook for the next few days
In light of these data, analysts expect volatility to remain high until international markets find a new balance between Treasury yields and growth expectations. For stock market participants, vigilance in sensitive sectors such as technology and energy will be crucial, as will monitoring currency fluctuations, which will continue to impact the results of Nikkei -listed companies.
Possible scenarios for investors
If US interest rates remain high, pressure on growth stocks in Japan is likely to intensify, pushing investors toward more defensive assets such as utilities or companies with significant exposure to the domestic market. Conversely, a potential decline in Treasury yields could favor a rebound in the Nikkei , especially if the yen were to weaken, making exports more competitive.