The Nikkei Average fell sharply at one point during the morning session in Tokyo, but pared its losses in the afternoon to close down 1,259 yen at 64,011. Attention is focused on tonight’s release of the US CPI for August.
The Nikkei Average fell sharply at the start of trading in Tokyo, dropping 2,062 yen to 63,208 at 9:20 a.m. and setting a new intraday low. It then narrowed its losses to 1,801 yen at the morning close, finishing at 63,469. The decline eased in the afternoon session, and the index ultimately ended trading down 1,259 yen at 64,011. The TOPIX fell 26 points to 4,028, while the TSE Growth 250 declined 14 points to 767, extending its losing streak to 5 sessions.
Among individual stocks, INPEX rose 1.4% to ¥3,930, while Kawasaki Kisen jumped 2.9% to ¥3,397 in a sharp rebound. Takara Tomy gained 3.6% to ¥3,639. Sumitomo Forestry fell as much as 3.2% to ¥1,214, renewing its year-to-date low. Bengo4.com rose as much as 9.7% to ¥5,870, renewing its year-to-date high. Related stocks moved higher as crude oil prices continued to rise, while target price revisions by domestic securities firms were cited as a buying catalyst.
VIEW POINT: Outlook for Tomorrow
The US CPI for August is scheduled to be released tonight. With expectations for a Federal Reserve rate hike in September still lingering, the strength of the inflation data and the pace of disinflation could cause market drivers to shift again. Against this backdrop, we will assess how the market is likely to develop next week.