The Nikkei Average was trading around ¥230 below the previous day's level on the morning of 1 September, narrowing its decline as investors bought on dips after selling subsided. The market remained under pressure from the continued decline in U.S. equities, but showed overall resilience.
The Nikkei Stock Average was trading around ¥230 below the previous day's level in the Tokyo market on 1 September. U.S. equities fell on 31 August local time following news of attacks on Iran and retaliatory action, and selling prevailed in the Tokyo market as the decline in U.S. stocks continued to weigh.
The Nikkei Average was down around ¥735 at one point at 9:13 a.m., but narrowed its decline as investors bought on dips after selling subsided. The yen-denominated settlement price for Chicago Nikkei futures was ¥5,890, down ¥560 from the previous day, compared with the settlement price on the Osaka Exchange on 31 August local time.
By sector, 9 of the 33 sectors declined and 24 advanced. Metal products and nonferrous metals stocks were weak, while electrical equipment and services stocks were also lower. Steel, electric power and gas, oil and coal products, and mining stocks were firm or higher. The market is expected to continue fluctuating depending on developments in the Dow.
In the Tokyo foreign exchange market, as of 10:00 a.m., the dollar-yen rate was trading in the upper ¥159 range and the euro-yen rate in the mid-¥185 range. Overall market conditions are expected to remain susceptible to developments in U.S. markets and movements in oil and resource-related assets.