The Nikkei average fell for the first time in 3 sessions, closing at ¥68,309.46. Profit-taking selling dominated after the previous day's sharp rise, while investors adopted a wait-and-see stance ahead of developments in U.S. markets and the employment report.
The Nikkei average ended lower for the first time in 3 sessions as profit-taking selling led the market following its sharp gains through the previous day. At times it followed the previous day's buying of semiconductor-related stocks in the U.S. market, but it then moved lower from its morning level and fell again toward the end of the morning session. With the employment report approaching, sentiment increasingly favored waiting to assess developments in Japan and the United States.
On the TSE Prime Market, more than 1,300 stocks declined, accounting for over 80% of the total. By sector, nonferrous metals, mining, oil and coal products, and marine transportation rose, while securities and commodities futures, real estate, other finance, and transportation equipment declined. Advantest, Fujikura, BayCurrent, Kioxia Holdings, and Ibiden were among the advancers cited as stocks with a significant impact on the Nikkei average.
Although major U.S. stock indexes had risen, profit-taking selling in the Nikkei average continued at times as a reaction to its recent gain of more than ¥3,400. Rising long-term interest rates were also cited as a backdrop, and selling spread at times to financial stocks such as banks, insurers, and securities companies. Expectations of additional rate hikes could resurface depending on the employment report, and market participants want to assess developments ahead.