The Nikkei 225 extended its decline after the open and was down ¥409 from the previous day as of 9:00 a.m. Investor sentiment turned cautious against the backdrop of lower U.S. stocks and elevated long-term interest rates, while dip-buying was also seen around ¥70,000.
The Nikkei 225 has extended its decline after the open and was down ¥409 as of 9:05 a.m. Yesterday's decline in U.S. stocks and elevated long-term interest rates in Japan and overseas were cited as factors, strengthening investors' risk-averse stance. Selling therefore dominated at the open.
Market participants said that the Nikkei 225's gain of more than ¥6,500 through the previous day had created a sense of short-term overheating, making profit-taking more likely. Others noted that, while uncertainty over the outlook for the situation in the Middle East persists, the decline in crude oil futures acted as a reassuring factor for the equity market.
Selling led the market after the open, but some market participants view the downside for the Nikkei 225 as relatively firm. Companies with February year-ends are expected to increase their announcements of interim results for the six months ending August, and some expect interest in stocks with strong results and earnings to increase.
In the current market environment, investors remain focused on assessing the direction of the market as a whole, and attention is expected to remain on short-term trends. The focus is on how much the selling seen at the open will expand during the day.