In the morning session of the 2nd in Tokyo stock market, the Nikkei average temporarily fell by more than 2,000 yen, dropping below the 37,000 yen mark. The US stock market fell on the 1st due to concerns about the future of the economy, and this trend spread to the Tokyo market as well. On the 1st, it also fell by more than 1,300 yen at one point, making it a consecutive day of sharp declines. The market has also pointed out the possibility that it could “fall to 33,000 yen” depending on the future course of the US economy.

The Nikkei average’s morning closing price was 36,261.85 yen, down 1,864.48 yen from the previous day’s closing price.

Yoshikiyo Shimamine, a senior fellow at Dai-ichi Life Research Institute, analyzed that “If the risk of a further slowdown in the U.S. economy becomes a concern, the yen will appreciate even more, and the Nikkei average could fall to 33,000 yen. ” He went on to predict that “the fair value of the Nikkei average (the appropriate price taking into account corporate performance, etc.) is around 38,000 yen, so even if it falls, it will not fall across the board.”

Few people expect the Nikkei average to continue its downward trend. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, also predicted that the sharp drop in the Nikkei average in the morning of the 2nd was “driven by overseas speculators, and eventually there will be a large buyback to lock in profits.” He also said, “If expectations for a soft landing for the U.S. economy grow and real wages in Japan rise, the Nikkei average will return to an upward trend toward the end of the year.”

On July 31, Federal Reserve Chairman Powell hinted at a rate cut in September. Due to concerns that the US economy was slowing down more than expected, the US stock market fell sharply on August 1. The Nikkei average also followed this trend and fell sharply in the morning of the 2nd.

Tokyo Stock Exchange falls by more than 2,000 yen to the 36,000 yen range at one point