The Nikkei Average pared its losses in the afternoon and posted a modest rebound late in the session, closing ¥128 higher at ¥65,270. The US producer price index (PPI) is due to be released tonight, with investors continuing to gather information.
The Nikkei Average opened ¥374 lower at ¥64,768, and selling pressure prevailed during the session against the backdrop of worsening conditions in the Middle East. It fell to ¥64,186 at 10:36 a.m., its intraday low.
Selling subsided in the afternoon, narrowing the decline. Before the close, the index rebounded to the previous day's closing level of ¥65,142, ultimately ending trading ¥128 higher at ¥65,270. The TOPIX rebounded, while the TSE Growth 250 fell for a fourth consecutive day.
Among individual stocks, Nintendo fell 4.9% to ¥7,989, Recruit Holdings rose 3.6% to ¥15,850, Mitsui High-tec rose 4.6% to ¥940, Panasonic Holdings rose 2.7% to ¥4,292, and Tobila Systems rose 10.3% to ¥1,568, all showing significant moves. In each case, factors viewed as catalysts prompted buying.
From a market perspective, some analysts believe that gains in US stock index futures in after-hours trading helped improve sentiment. The August US PPI and ORCL earnings are the main points of focus tonight, and price trends may influence the market's direction going forward.