Nikkei futures plunged below ¥63,000. As downward pressure on the market as a whole intensified against the backdrop of US earnings and moves in major stocks, stocks awaiting earnings announcements, including Murata Manufacturing and Sumitomo Electric, influenced market direction.
Japanese stocks fell on Monday, with Nikkei futures down ¥1,490, or approximately 2.30%. Futures fell below the 5-day moving average, while selling pressure intensified at the month-end and start of the week. The outlook for earnings from Nasdaq-related companies in the US, as well as Alphabet and Amazon, weighed on market sentiment. Bitcoin's decline and news from the Middle East were also cited as headwinds for the market.
Murata Manufacturing and Sumitomo Electric announced their earnings today, and intraday trading became active following the afternoon announcements. Murata Manufacturing rose temporarily after announcing its results, but lacked direction toward the close, while Sumitomo Electric also fluctuated with both upper and lower shadows. Data Section fell sharply, and there were periods when funds rotated into small-cap stocks, but selling prevailed overall.
Among large-cap stocks, Advantest showed signs of being pushed back as it approached its 75-day moving average, while most other stocks remained weak. Many stocks, including Data Section and Tier 4 names, were forced lower. Although fund rotation into small-cap stocks continued, the broader trend remained downward. The prevailing view was that the trend could change substantially depending on next week's earnings announcements.