The Nikkei average fell back in morning trading in Tokyo on the 2nd, closing the morning session at ¥68,326.72, down ¥630.00 from the previous day. The pullback after the gains through the previous day and developments in global affairs weighed on the market.
The Nikkei average fell back in morning trading in Tokyo on the 2nd, ending the morning session at ¥68,326.72, down ¥630.00 from the previous day. The index traded 0.91% lower as selling emerged on concerns over factors that could affect the outlook.
The decline exceeded ¥800 at one point, as selling by investors waiting for a rebound and profit-taking spread following the more than ¥3,400 gain the previous day. NQN reported the move as breaking news.
As a source of selling pressure, reports said the U.S. Department of Defense would strengthen its military presence in the Middle East, prompting a reassessment of geopolitical risk that affected prices. The fact that crude oil futures remained near their highs also weighed on the market.
Some market participants said the Nikkei average could swing in either direction depending on upcoming comments by key U.S. and Chinese officials and developments in the Middle East.