The Nikkei Average traded around ¥300 below the previous day's level, but narrowed its losses once the initial selling subsided and held firm during the morning. While lower U.S. stocks and higher crude oil prices weighed on the market, buying on dips was also seen, particularly in strong-performing stocks.
In the Tokyo stock market on the 18th, the Nikkei Average traded around ¥300 below the previous day's level. Its decline exceeded ¥641 during the 9:00 hour, but losses narrowed once the initial selling subsided. The move was reportedly driven by lower U.S. stocks and higher crude oil prices.
By stock, SoftBank Group and Fujikura were bought, at times supporting the Nikkei Average, while Advantest and Tokyo Electron were negative contributors.
By sector, 19 of 33 sectors declined and 14 advanced. Food, other products, services, real estate and retail were weak, while marine transportation, nonferrous metals and mining were relatively firm.
In the foreign exchange market, dollar/yen traded around the lower ¥159s and euro/yen around the upper ¥184s, moving narrowly from the morning.
The day's market action reflected an interplay between buying on dips in strong-performing stocks and pressure from profit-taking sales.