The Nikkei Average was down more than ¥1,000 from the previous day at the open, marking its third consecutive decline. Turmoil in US markets, rising tensions in the Middle East and higher long-term interest rates weighed on the market.
The Nikkei Average opened on the 2nd at ¥65,195.43, down ¥1,019.91 from the previous day, beginning a sharp third consecutive decline. The index subsequently accelerated its fall, dropping below ¥65,000.
In US equity markets on the 1st local time, the Dow and Nasdaq Composite both fell for a third consecutive session following the US government's attack on Iran and rising crude oil futures. In Tokyo, concerns over higher long-term interest rates and geopolitical risks in the Middle East weighed on the market, with selling dominating.
The yen-denominated settlement value for Chicago Nikkei Average futures was approximately ¥1,280 below the Osaka Exchange settlement value, signaling a decline in the cash market.
In the foreign exchange market, as of 9:02 a.m., the dollar was trading in the lower ¥160s and the euro in the mid-¥185s.