The Nikkei Average is expected to trade near its lows in a range-bound fashion in the afternoon session after falling sharply, with short-term selling seen as likely to prevail. The downside level to watch is around ¥68000.
The Nikkei Average fell sharply to ¥68098.54, down 1121.71 from the previous day, while TOPIX fell 19.00 points to 4165.11. For the afternoon investment strategy, range-bound trading near the lows is expected, with views that short-term profit-taking and selling by investors waiting for a rebound are likely to emerge.
In the US market, crude oil prices rose against the backdrop of stalled peace talks with Iran, while rising long-term interest rates also heightened caution in equity markets. At the same time, buying was seen in mining, oil and coal products, and marine transportation on the back of higher crude oil prices, while funds flowed into defensive sectors such as pharmaceuticals, providing some support on the downside.
The shift in market focus from growth stocks to value and economically sensitive stocks is continuing, and attention is centered on how the Nikkei Average moves around ¥68000. Movements around this level are expected to be the focus in the afternoon session. Presented by Fisco.