The Nikkei fell in the morning session as investors reacted negatively to the previous week’s decline in U.S. stocks. It briefly fell to ¥64,832 shortly after the open, but declines eased after it broke below ¥65,000 as the psychologically important support level came into focus.
The Nikkei fell 1.57% from the previous day to ¥65,361.60 in the morning session on the Tokyo Stock Exchange. It briefly declined to ¥64,832 around the opening, falling below ¥65,000. Selling driven by concerns over lower U.S. stocks led the market lower.
Investor sentiment deteriorated after comments by U.S. Federal Reserve Chair Warsh (ウォーシュ) at the Jackson Hole meeting were viewed as hawkish, while U.S. stocks fell at the end of the previous week. Growing concerns about rate hikes in both Japan and the United States weighed on the market.
On the TSE Prime Market, 696 stocks rose, 795 fell and 62 were unchanged. TOPIX fell 0.43% to 4,128.76 points, while trading value was ¥3.50466 trillion. Among individual stocks, SoftBank Group fell, while semiconductor-related stocks Lasertec and Advantest suffered sharp declines. Kioxia Holdings turned positive after opening lower, and Fast Retailing edged higher.
A strategist at Nomura Securities said that the probability of a U.S. rate hike had risen following Warsh’s comments, while concerns about a rate hike in Japan also remained. The strategist said semiconductor-related stocks led the decline and that Nvidia fell sharply, partly due to a post-earnings reversal. The Nikkei is being watched with ¥65,000 seen as a psychological downside level, and its recovery after the open is expected to determine the outcome of this battle.