The Nikkei Average opened down ¥190 and remained range-bound thereafter. Market participants appeared to be awaiting developments in U.S. markets and the release of key economic indicators.
The Nikkei Average was down ¥190 as of 9:05 a.m., with selling prevailing at the outset. The 25-day moving average around ¥65,600 and the 75-day moving average around ¥66,300 were each seen as resistance on the upside, prompting views that the scope for further short-term gains was limited.
The market traded range-bound after opening, with investors holding off on buying as they awaited NVIDIA's earnings announcement and Fed-related speeches at the Jackson Hole meeting. At times, however, a sense of reassurance spread as investors assessed the impact of U.S. stock market trends and movements in crude oil prices and long-term interest rates.
Some market participants had viewed downside risk as limited after the Nikkei Average rebounded yesterday following an initial decline. At the opening, however, selling prevailed, and trading remained subdued thereafter.