The Nikkei Average was up ¥115 at the open and stood at that level as of 9:05 a.m., but gains have since remained subdued. Buying initially prevailed on gains in U.S. equities and the previous day's decline, while rising domestic interest rates and movements in the yen and crude oil have dampened investor sentiment.
The Nikkei Average was up ¥115 at the open and stood at that level as of 9:05 a.m. Gains in major indexes on the previous day's U.S. stock market provided a buying catalyst for the Tokyo market, while buying on dips after the Nikkei's decline of more than approximately ¥2,000 over the three days through yesterday, as well as buying aimed at a technical rebound, was more likely to emerge. Buying prevailed at the open.
However, continued increases in domestic long-term interest rates, uncertainty over the outlook for the situation in Iran, and elevated crude oil futures prices and U.S. long-term interest rates in overseas markets have made investors more cautious. In addition, the yen has strengthened against the dollar in the foreign exchange market, trading in the ¥158.80 range, which is viewed as a factor putting pressure on exporters' earnings. After the open, the Nikkei's gain gradually narrowed and remained subdued.