The Nikkei average opened the afternoon session down by 80.75 points, settling at 36,151.76 yen. This decline follows a slight drop in the morning, with the index having previously closed at 36,155.26 yen. During the lunch break, Nikkei 225 futures fluctuated between 36,020 and 36,230 yen. The dollar was trading at 146.60-70 yen, indicating a strengthening yen against a weakening dollar.
In broader Asian markets, the Shanghai Composite Index fell by approximately 0.3%, while the Hang Seng Index also experienced a decline after an initial rise. The recent surge in the Nikkei, which gained over 1,200 yen the previous day and surpassed the 36,000 yen mark, led to expectations of a correction. Some analysts view today’s drop as a normal adjustment following the recent rally.
Market participants are exercising caution, particularly in export-related stocks, due to the yen’s appreciation. Additionally, many are waiting for the release of the U.S. Consumer Price Index (CPI) for July, which is expected later today.
Sector performance showed declines in precision equipment, chemicals, and transportation-related stocks, while insurance, transportation equipment, and petroleum sectors saw gains. Notable decliners included Mercari, Hitachi, and Shin-Etsu Chemical, while stocks like Socionext and Tokyo Electric Power Holdings experienced upward movement.