The Nikkei began just above the ¥70,000 psychological threshold, but subsequently extended its decline. All 3 major US indexes fell, while persistently high US long-term interest rates weighed on investor sentiment.
In Tokyo trading on the 8th, the Nikkei 225 opened just above the psychologically important ¥70,000 level. It subsequently stood at ¥70,035.71, down ¥648.27 from the previous close, coming within roughly ¥35 of the threshold.
In the US market, all 3 major indexes fell: the Dow Jones Industrial Average was down $341.41, the Nasdaq Composite was down 61.20 points, and the S&P 500 was down 17.16 points. Reports that persistently high US long-term interest rates weighed on investor sentiment gained traction.
In the foreign exchange market, the dollar was trading at around ¥158.07, with investors focusing on expectations for earnings at export-related companies and the impact of higher costs on domestic-demand companies. In Japan, the key focus was whether the Nikkei could hold the ¥70,000 threshold.
The Nikkei had recovered the threshold in the previous day's trading, but profit-taking selling prevailed, making whether it could hold near that level on the 8th a key focus. Movements from the open could again intensify depending on US interest-rate trends and the Bank of Japan's monetary policy stance.