The Nikkei Average extended its decline amid lower US stocks the previous day and concerns about a resurgence in inflation. Buying led at the open, but the index fell into negative territory in the afternoon, with higher crude oil prices, worsening Middle East tensions and expectations of a BOJ rate hike weighing on the market.
US stocks extended their decline the previous day, and Japanese stocks opened lower, with the Nikkei Average starting down from the previous day. Although technology stocks provided support, US stocks were generally mixed, and caution spread across the market following the rise in crude oil prices. The Nikkei Average opened at ¥65,087.22, with selling leading at the open.
Oil and resource-related stocks were bought at times against the backdrop of higher crude oil prices, but the buying did not continue. Although the market briefly recovered ground during the session, buying ultimately remained weak. Concerns about worsening Middle East tensions and a resurgence in inflation weighed on investor sentiment, and the index turned weaker again.
Technically, the index remained below its 25-day and 75-day moving averages, which continued to be viewed as overhead resistance. At the close, the Nikkei Average was down ¥126.55 from the previous day at ¥65,142.78. Trading volume on TSE Prime was 2.30029 billion shares, and trading value was ¥9.2303 trillion.
By sector, nonferrous metals, oil and coal products, and mining rose, while securities, commodity futures, services and retail declined. Among individual stocks, gainers included SoftBank Group and TDK, while decliners included Fast Retailing, Nintendo, Kioxia Holdings and Terumo.