Selling prevailed at the Tokyo market open, with the Nikkei 225 down ¥374 from the previous day at around ¥64,768. Declines in US stocks and renewed tensions in the Middle East are heightening risk aversion.
The Nikkei 225 stood at ¥64,768 at the Tokyo market open, down ¥374 from the previous day, and started below ¥65,000.
In addition to all three major US indexes falling in the previous day's US trading, heightened tensions in the Middle East increased market caution. The rise in US long-term yields, amid views that the size of the US Treasury's long-term Treasury buyback and retirement operation fell short of market expectations, also prompted a risk-off stance in Japan.
At this juncture, some views suggest that the previous day's resilience in US semiconductor stocks could provide support for the market, while continued attention is also considered necessary regarding the yen's strengthening trend.
Overall, the Tokyo market opening is expected to remain dominated by selling, driven by developments in the US and the situation in the Middle East.