The Nikkei fell ¥1,572 and extended its decline after the open. Selling dominated at the opening amid concern over sharp declines in the US market, a drop in the SOX Index and oil price movements.
Selling dominated from the opening in the Tokyo market, with the Nikkei down ¥1,572 as of 9:05. Declines in US stocks weighed on the Japanese market, while a sharp drop in the SOX Index, which leads semiconductor-related stocks, pushed share prices lower.
With oil prices holding firm in overseas markets, investors held back from aggressive buying as they waited to assess the release of US employment data. A cautious stance among buyers spread. Meanwhile, stability in long-term US interest rates provided some reassurance, and investors remained interested in stocks reporting favorable quarterly results.
After four consecutive days of declines, conditions were conducive to investors waiting for a dip in the Nikkei. Selling dominated after the open, although interest in companies announcing results remained firm.
Overall, today’s market is in a short-term correction phase, and may become more active depending on upcoming US employment data and the progress of corporate earnings announcements.