The Nikkei 225 fell ¥644.10 to ¥65,039.16 in the morning session and briefly dipped below ¥65,000 toward the morning close. The market is expected to remain weak in the afternoon against a backdrop of lower U.S. stocks and expectations of a rate hike by senior Federal Reserve officials.
The Nikkei 225 ended the morning session at ¥65,039.16, down ¥644.10. Estimated trading volume exceeded approximately 1.3 billion shares. The Nikkei continued to fall in response to developments in U.S. equity markets, with declines in Lasertec and SoftBank Group weighing on the market.
Comments by senior Federal Reserve officials supporting a rate hike and reports concerning Chairman Warsh were reported during the morning session, strengthening expectations of an early rate hike and weighing on investor sentiment. The Nikkei also briefly fell below ¥65,000.
Among individual stocks, Bandai Namco Holdings, Recruit Holdings, Konami Group, KDDI, FANUC and Fast Retailing rose. Advantest, SoftBank Group, Lasertec and FUJIFILM fell. By sector, oil and coal products and Other products rose, while non-ferrous metals and electrical equipment declined.
The Nikkei is expected to remain weak around the ¥65,000 level in the afternoon, with trading likely to be subdued depending on Federal Reserve-related developments and the U.S. employment report. Investors are expected to continue focusing on stocks that have reported strong earnings.