The Nikkei 225 entered a phase in which it was testing levels below ¥70,000, with its losses widening after the opening. The morning session was reported to be down ¥600 to more than ¥800, with short-term profit-taking viewed as the main factor.
The Nikkei 225 extended its losses after the opening, and the market continued to battle around the ¥70,000 milestone. Selling dominated in the short term, and the market as a whole remained weak.
Sources pointed out that key levels are prone to being breached in futures-led trading, and said that continued declines could create adjustment pressure on high-PER growth stocks and external-demand stocks.
The focus ahead is market sentiment surrounding a break below ¥70,000, dip-buying activity and the scope of the impact on each sector. Updates to indicator data are awaited for stock-by-stock developments and specific trading guidelines.