The Nikkei 225 ended sharply lower at ¥65,269.33, down ¥1,130.51 from the previous day. With US markets closed and few market catalysts available, export-related stocks came under selling pressure as the yen strengthened.
With US markets closed for Labor Day the previous day and few market catalysts available, the Nikkei 225 opened ¥556.15 lower. Profit-taking selling prevailed initially following the previous day's sharp gains, but the selling subsided and the market began to hold its ground, briefly recovering into positive territory.
However, after the yen temporarily surged into the ¥152-per-dollar range in the foreign exchange market, selling spread to export-related stocks such as automakers and electronic component manufacturers. The index turned negative again in the afternoon session, with losses widening toward the close. There was also a wait-and-see stance as market participants assessed uncertainty surrounding the situation in the Middle East and awaited the direction of US markets.
The Nikkei 225 closed at ¥65,269.33, down ¥1,130.51 from the previous day. Trading volume on the TSE Prime market was 2.10001 billion shares, while trading value was ¥8.4774 trillion. By sector, Information & Communication and Oil & Coal Products rose, while Glass & Ceramics Products, Transportation Equipment and Electric Appliances declined.