The Nikkei Average opened ¥378 lower, with trading cautious amid rising U.S. long-term interest rates and ahead of the release of U.S. economic data. Trading has been range-bound since the open.
The Nikkei Average opened ¥378 lower in Tokyo trading today. The decline in U.S. stocks and the rise in U.S. long-term interest rates were cited as factors weighing on investor sentiment, and some market participants saw limited near-term upside.
Some market participants were watching the 75-day moving average in the ¥66,600 range as resistance for the Nikkei Average, which has remained range-bound since the open. Buying has reportedly been restrained ahead of the release of the August PCE deflator in the United States and Micron Technology's earnings.
Although uncertainty over the situation in the Middle East continues, crude oil futures, which rose temporarily in overseas markets, have settled, providing some reassurance to the Tokyo market. Expectations of fund inflows as the new fiscal year begins have also been cited as a factor supporting share prices.
The Nikkei Average remained lower at the open, and its subsequent direction could fluctuate depending on the release of U.S. economic data, developments in the Middle East and oil markets, and fund flows.