The Nikkei 225 started 195.07 yen lower at ¥69,840.64 at the open, extending its decline. Against a backdrop of weaker U.S. stocks and higher oil prices, major stocks including Komatsu widened their losses.
The Nikkei 225 opened 195.07 yen lower at ¥69,840.64 on the 8th, beginning trading after U.S. stocks fell the previous day. The Dow ended down 341.41 points and the Nasdaq down 61.20 points, amid heightened inflation concerns caused by higher oil prices. After the open, selling on concerns over rising bond yields and declines in financial stocks weighed on the market, while falling oil prices and a slowdown in the rise in long-term interest rates narrowed the losses toward the end of the session.
Selling pressure led across the market, but dip buying was also observed near closing levels as the market suffered its first decline in three sessions since September, and some pointed to firm dip-buying interest around ¥70,000 as supporting the downside. Domestic and overseas long-term interest-rate levels have made investor sentiment cautious, and stock selection may intensify ahead of the upcoming earnings season. Before trading began, the August balance of payments was reported to be in surplus, while overseas investors were reported to have net bought ¥2.1919 trillion of domestic stocks.
By sector, nonferrous metals, machinery, wholesale, steel, and securities and commodity futures declined, while services, pharmaceuticals and retail rose. Among the stocks with the highest trading value, Komatsu, Mitsui & Co., Sumitomo Metal Mining, IHI and Mitsubishi Corp. fell. Recruit Holdings, Taiyo Yuden, Mitsui Mining & Smelting, Honda, Nintendo, Toyota Motor and Takeda Pharmaceutical rose.
Economic data released before trading began showed a current-account surplus of ¥4.062 trillion, while figures indicated that overseas investors had net bought domestic stocks for the first time in four weeks during 27 September–3 October.