The Nikkei Average was down ¥1,533 as of 9:05 a.m., with losses widening after the open. Risk aversion has intensified amid declines in U.S. stocks, rising oil prices and higher U.S. long-term interest rates, while caution has spread ahead of key events next week, including the FOMC meeting and the Bank of Japan policy meeting.
Selling led the Tokyo market today, with losses in the Nikkei Average widening after the open. Declines in the major U.S. stock indexes in the previous session weighed on the market, while rising crude oil futures prices and U.S. long-term interest rates in overseas markets dampened investor sentiment. In addition, investors have become increasingly reluctant to buy aggressively ahead of tonight's U.S. CPI release and next week's FOMC meeting and Bank of Japan monetary policy meeting.
In the foreign exchange market, the dollar rose to the ¥154.40 range, with the yen weakening by about 90 sen, prompting some views that the move would support earnings prospects for Japanese exporters. At the same time, after the Nikkei Average fell sharply at one point yesterday, it tested lower levels without rebounding, and the market was reported to be dominated by selling at the open.