The Nikkei average opened lower in Tokyo trading on the 8th, temporarily falling more than ¥600. The yen’s appreciation to the ¥153-per-dollar range prompted selling of export-related stocks.
The Nikkei Stock Average opened lower on the 8th at ¥65,843.69, down ¥556.15 from the previous day. The decline temporarily exceeded ¥600, and as of 9:05 a.m., the index was down ¥463.
The rapid appreciation of the yen in the foreign exchange market was cited as a factor behind the early selling. The yen advanced to the ¥153-per-dollar range, prompting selling centered on export-related companies amid concerns about deteriorating earnings.
The Nikkei had risen by nearly ¥2,200 through the previous day on a series of gains, creating market conditions in which short-term profit-taking and selling by investors waiting for a rebound were also likely. The 75-day moving average, just under ¥66,800, was being watched as overhead resistance.
At the same time, the previous day’s Nikkei had ended near its low after recovering the 25-day moving average, prompting attention to strong buying appetite and signs that the short-term correction had run its course. After the open, the market remained range-bound.