Following a retreat in US equities the previous day, the Nikkei Stock Average rose briefly in the morning session before turning negative, closing at ¥66,164.19 on approximate trading volume of 974.67 million shares. On 27 August, the Nikkei initially rose as much as ¥513.62, but buying failed to continue and selling by investors waiting for a rebound prevailed.
US markets had retreated the previous day, with the Dow Jones falling and the Nasdaq also edging lower. Inflation concerns remained persistent following the US PCE inflation data, while markets continued to be wary of higher interest rates. The Nikkei initially rose after the morning open, led by buying in semiconductor-related stocks, but the gain narrowed before the index fell into negative territory.
By the end of the morning session, the Nikkei Stock Average was trading around the previous day's close. Into the afternoon session, the 75-day moving average was seen as potential resistance on the upside. The impact of the US PCE data and caution over higher interest rates continued, while some investors refrained from active trading ahead of the Jackson Hole meeting on 28 August.
Among individual stocks, gainers included Kioxia Holdings, Fujikura, TDK, Ibiden, Tokyo Electron, Murata Manufacturing, Kyocera, BayCurrent, Olympus, Sumitomo Electric Industries, Trend Micro, Nitori Holdings, Furukawa Electric and FANUC. Decliners included Advantest, Fast Retailing, SoftBank Group, Nissan Chemical, Nintendo and Shionogi. By sector, nonferrous metals, mining and electric appliances rose, while marine transportation, Other Products and pharmaceuticals fell.