The Nikkei Average opened down more than 70% from the previous day, falling to ¥65,668.51. Against the backdrop of US market trends and Federal Reserve-related factors, selling spread after the open, centered on major technology stocks.
Japan's stock market opened on 31 August with the Nikkei Average down ¥737.05 from the previous day at ¥65,668.51. Following the Dow Average's close down $9.45 and the Nasdaq's close down 138.92 points, selling prevailed after the open. Market participants reportedly took a wait-and-see stance ahead of a speech by Federal Reserve Chair Warsh, while weaker PMI and consumer confidence also deterred buying.
Selling spread further after the open, weighing on the market, particularly technology stocks. Following a decline in the SOX Index, major stocks also came under pressure in Japan, pushing the Nikkei Average lower. Toyota Motor, NTT and Sony Group were among the stocks that rose, but Kioxia Holdings, Fujikura, Mitsubishi UFJ, Mitsubishi Heavy Industries, Tokyo Electron, Taiyo Yuden and Murata Manufacturing declined.
By sector, nonferrous metals, machinery and electrical equipment stood out among the decliners, pushing up the market's overall decline. With investors monitoring developments in the Bank of Japan and US markets, the Nikkei Average continued to widen its losses after the open. Ultimately, buying restraint continued across the Tokyo market against the backdrop of movements in major stocks and US markets.