The Nikkei Average fell for a third straight day under the influence of declines in US stocks, while the TOPIX moved slightly higher. As volatility in US stocks continues, the divergence between domestic-demand-oriented stocks and broader domestic-demand issues has become pronounced.
Japanese stocks remained on a downward trend, weighed down by declines in US stocks. The Nikkei Average fell for a third straight day, while the TOPIX remained in slightly positive territory.
Specifically, moves in the US market had an impact. The decline in the Dow Jones Industrial Average drew the Nikkei lower, while the TOPIX remained positive, led by domestic-demand-oriented stocks.
The difference in the performance of the Nikkei and TOPIX suggests a divergence between export- and growth-oriented stocks and domestic-demand- and value-oriented stocks. As volatility in US stocks continues, attention will need to be paid to portfolio concentration.