The Nikkei Average started trading on the 8th at ¥65,843.69, down ¥556.15. TSE First Section stocks, including Taiyo Yuden and IHI, generally opened lower.
The Nikkei Average opened on the 8th at ¥65,843.69, down ¥556.15 from the previous day, as selling prevailed following the previous day's closure of the U.S. market. European markets were mixed, leaving few trading cues, while short-term selling pressure emerged. Profit-taking after the gains through the previous day and selling by investors waiting for a rebound were likely to weigh on the market.
The 75-day moving average was viewed as resistance on the upside, and expectations spread that the scope for further short-term gains was limited. As a result, selling prevailed at the open, and concerns were also raised that this could put pressure on the earnings of export-related companies.
Revised domestic gross domestic product figures and preliminary balance-of-payments figures released before the market opened were cited as market catalysts, while some observers said the market was increasingly likely to undergo a correction following a rally lasting more than six months. By sector, transport equipment, banks and rubber products were among the biggest decliners, while some retail stocks advanced.
In the morning-session overview, the Nikkei Average lacked a major catalyst for a rebound and selling was dominant at the open. From the afternoon session onward, however, its direction is expected to depend on upcoming economic data and corporate developments.