Image Credits: CBS 42
The Nikkei Stock Average on the Tokyo Stock Exchange fell for the fourth consecutive trading day on September 6, closing at 36,391.47 yen, marking a decline of 265.62 yen or 0.72% from the previous session. The downturn reflects mounting investor anxiety over upcoming U.S. employment data and its potential impact on both yen movement and U.S. stock performance.
The Tokyo market was notably unsettled ahead of the August U.S. employment statistics, which are anticipated to be a key determinant for future U.S. interest rate adjustments. The ADP National Employment Report released on September 5 revealed job growth that fell short of market expectations, amplifying concerns about the upcoming data. Analysts predict that weak employment figures could prompt a stronger yen and weaken the dollar, potentially driving the Nikkei below the 36,000 yen mark early next week. Yamaguchi Masahiro, head of investment research at SMBC Trust Bank, warned of significant market reactions if the employment report disappoints.
The yen strengthened against the dollar throughout the trading day, climbing from approximately 143 yen per dollar in the morning to 142 yen per dollar in the afternoon, reaching its highest level in a month. This appreciation exerted additional pressure on export-oriented stocks, with notable declines observed in companies like Toyota and other major automakers. At one point, the Nikkei index dropped by over 400 yen, reflecting the broader market’s vulnerability to currency fluctuations.
In addition to the Nikkei’s decline, the Tokyo Stock Price Index (TOPIX) fell for the third straight day, closing at 2,597.42, down 23.34 points or 0.89%. Similarly, the JPX Prime 150 Index also saw a decline, closing at 1,157.58, down 12.74 points or 1.09%.
Overall trading on the Tokyo Stock Exchange Prime totaled approximately 3.8553 trillion yen, with a trading volume of 1.6843 billion shares. The market saw 1,163 stocks decline, 433 rise, and 48 remain unchanged, highlighting a broad-based sell-off in response to the yen’s appreciation and market uncertainty.