The Nikkei Average opened at ¥65,427.69, down ¥789.10, as it began trading lower against a backdrop of sharp declines in US stocks, higher crude oil prices and rising long-term yields. Among major stocks, SUMCO and Fast Retailing were sold.
The Nikkei Average opened on the 21st at ¥65,427.69, down ¥789.10, with selling prevailing following the sharp decline in US markets the previous day. In addition to lower closing prices for the Dow and Nasdaq, rising US long-term yields and higher crude oil prices dominated the cautious tone in the domestic market. The decline widened after the open, with selling leading in the Tokyo market.
By sector, nonferrous metals, precision instruments and machinery ranked among the biggest decliners, while marine transportation, wholesale, land transportation, mining and transportation equipment were relatively firm. SUMCO, Fast Retailing and Taiyo Yuden were among the stocks with the highest trading value on the TSE Prime Market. Decliners stood out, although some stocks rose relatively.
The SOX Index rebounded for the first time in 3 sessions, supporting semiconductor-related stocks. In the foreign exchange market, the stronger dollar and weaker yen prompted caution over exporters' earnings outlook, but selling led at the opening. July's nationwide headline consumer price index was reported preliminarily to have risen 1.8% month on month, also drawing market attention to price trends.
Looking ahead today, buying was held back and selling prevailed as investors positioned themselves ahead of earnings announcements next week. Views have emerged that subsequent market moves will depend on the results of US corporate earnings, crude oil trends and currency fluctuations.