Learning How Markets Work from the Nikkei Average Falling Below 63,000 Yen ー　Reading the Economic Sections of the Ehime Shimbun and Asahi Shimbun July 29, 2026 (Wednesday) Reiwa8

Today, I mainly read the economic section of the Ehime Shimbun and also referred to the Asahi Shimbun as additional information.

The most memorable event was the sharp decline in the Nikkei Stock Average. It fell by more than 2,500 yen and closed below 63,000 yen for the first time in about two months.

The main reasons for the decline were concerns about the huge amount of investment in artificial intelligence (AI) facilities and whether companies would really be able to recover those costs through future profits.

Semiconductor-related stocks had previously pushed the Nikkei Average higher because of strong expectations for AI growth. However, many of these stocks had risen rapidly based on future expectations, so investors began selling shares before earnings announcements.

In addition, the decline of U.S. semiconductor stocks and concerns about stronger competition from Chinese companies also put pressure on the market.

Semiconductor-related companies such as Kioxia Holdings, Advantest, and TOWA experienced significant declines.

However, not all companies fell. Food and retail companies attracted buying interest, and companies such as Asahi Group Holdings, Nitori Holdings, and Yamazaki Baking remained relatively strong.

Today I learned that stock prices are not determined only by current business performance. They are also strongly influenced by expectations and concerns about the future.

For example, Canon announced record-high sales, but its stock price declined. Investors were cautious because the improvement was influenced greatly by external factors such as the weaker yen and U.S. tariffs, rather than only by the company’s own growth.

On the other hand, RYODEN’s stock price rose because the company increased its dividend forecast and raised its profit forecast.

The stock market is not as simple as “good news means prices go up” and “bad news means prices go down.” Prices are decided by how investors evaluate the future.

Today I also checked foreign exchange rates.

The U.S. dollar was trading around the 164 yen level, showing yen weakness against the dollar. However, the yen strengthened against currencies such as the euro, pound, and New Zealand dollar. This reminded me that the value of the yen changes depending on which currency it is compared with.

I also looked at gold and platinum prices. Gold was around 25,000 yen per gram, and I began to understand why precious metals are considered valuable assets when financial markets become unstable.

In addition, I read about beef carcass prices, eggs, chickens, and vegetables.

Regarding Japanese beef, I learned that the highest grade does not always mean the highest price. Prices are influenced by the day’s demand, supply, and quality evaluation.

For eggs, I noticed that medium-small sizes could sometimes be more expensive than larger sizes. Bigger does not always mean more expensive.

Vegetable prices, including cabbage, radish, carrots, cucumbers, and mandarins, also changed depending on weather conditions and supply.

Through today’s economic reading, I realized that stock markets, foreign exchange markets, agricultural markets, and food markets all work according to a similar principle.

That principle is supply and demand.

When many people want something, prices rise. When supply increases, prices fall. Behind these movements are many factors, including weather, international situations, company performance, and people’s expectations and fears.

Reading the economic pages is not simply about knowing stock prices. It is about understanding how money and goods move throughout society.

By continuing to read a little every day, numbers that once looked meaningless are gradually becoming connected with explanations of “why prices went up” and “why prices went down.”

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