"Asian Stocks" Nikkei falls 846 points in half a day as expectations for Bank of Japan interest rate hike rise, while bank stocks rise against the trend

The Bank of Japan's interest rate hike expectations have risen this month, with the yen surging 0.4% during the Asian session, and the dollar against the yen falling to 155.45. Bank of Japan Governor Kazuo Ueda stated that the central bank will consider the pros and cons of raising interest rates at this month's policy meeting, as the likelihood of achieving economic and inflation forecasts is increasing with the gradual easing of uncertainties surrounding the U.S. economy and tariff policies. The Nikkei index reversed its upward trend from last Thursday, opening 64 points higher this morning (1st) before sharply declining in the early market, closing down 846 points or 1.68% at 49,407.

Interest-sensitive major bank stocks rose against the trend, with Sumitomo Mitsui Financial (8316.JP) and Mitsubishi UFJ Financial (8306.JP) each rising 2.3% to 2.8%, and Mizuho (8411.JP) up 1.6%. Real estate stocks plummeted, with Sumitomo Realty & Development (8830.JP) and Mitsui Fudosan (8801.JP) each falling over 4%.

Wire stocks showed a mixed performance, with Fujikura (5803.JP) down 8.6%, Furukawa Electric (5801.JP) down 3.3%, and Sumitomo Electric (5802.JP) up 1.6%.

Weighted stocks dragged down the market, with Mitsubishi Heavy Industries (7011.JP), SoftBank (9984.JP), and Fast Retailing (9983.JP) down 1.3% to 1.6%, and Tokyo Electric Power (9501.JP) down 6.3%. Toyota (7203.JP) and Nissan (7201.JP) fell 1.7% to 2.3%. NVIDIA supplier Advantest (6857.JP) dropped 4.4%