Tokyo Market Slumps Over 400 Points Amid US Sell-Off and Rising Oil Prices

The Tokyo stock market suffered its third consecutive day of losses on July 30, with the Nikkei 225 plummeting over 400 points. The downturn was triggered by a sharp sell-off in U.S. stocks and rising crude oil prices, fueled by President Trump's hawkish stance toward Iran.

Rising long-term interest rates also weighed on investor sentiment, pushing the Dow Jones Industrial Average down 1,153 points or 2.2% to close at 51,594 on July 29. The Nasdaq Composite tumbled 433 points to 24,442, with semiconductor-related stocks taking a hit due to concerns over artificial intelligence investments becoming a major risk to the financial system.

The Federal Open Market Committee held policy rates steady as expected, but Fed Chair Warsh's press conference saw long-term interest rates rise amid views that delays in rate cuts would accelerate inflation. The cautious mood ahead of the Bank of Japan's monetary policy meeting on July 31 added to selling pressure, with foreign investors snapping a two-week losing streak by buying ¥912.1 billion (approximately $5.6 billion) worth of Japanese equities during the week of July 19-25.