The Nikkei Stock Average fell 111.16 yen, or 0.17%, to 64,214.48 on September 3, reversing early gains supported by stronger U.S. equities and lower long-term Treasury yields. The index remained volatile around 64,400 as Middle East uncertainty, elevated crude oil prices and expectations for higher Japanese interest rates weakened sentiment. Trading-house stocks outperformed after Berkshire Hathaway CEO Greg Abel signaled on September 2 that the U.S. investment firm intended to hold its stakes in Japanese trading houses for the long term. TOPIX showed relative resilience, closing the morning session 1.04% higher at 4,124.08 points, while investors continued shifting toward value stocks over growth shares. Daiwa Securities senior strategist Daisuke Hashizume said the rebound after the previous session's sharp decline appeared sluggish and that Japanese equities faced heavy overhead resistance. Market participants will monitor U.S. monetary policy, Japanese interest-rate trends and Middle East developments, with trading expected to feature both dip-buying and selling into strength.