The Nikkei Average fell below ¥65,000 in the morning session and traded down approximately 1.57%. Short-term players continued to close out positions, while investors reduced exposure ahead of U.S. economic data releases.
The Nikkei Average was reported to have fallen more than ¥1,500 at one point, dropping below ¥65,000, creating market conditions in which short-term players were more likely to close out positions and strengthen risk management. As of the morning session, the Nikkei Average was down 1.57%, while the TOPIX was down 0.43%, showing a divergence.
Selling appeared to have spread mainly across leading and technology stocks, while market participants were also notably awaiting events amid unstable price movements. Market participants may be adjusting their positions.
In this highly uncertain environment, caution is spreading ahead of announcements such as U.S. economic data, amid concern about wider short-term price swings. The 31 August Market AI Topics highlighted expectations for U.S. interest-rate hikes, interest-rate trends and the impact of a weaker yen.