The Nikkei Average fell for the first time in six days. It closed the morning trading at 38,047.17 yen (volume approximate 0.707 billion shares), down 15.50 yen (-0.04%) from the previous business day.
The U.S. stock market continued to rise on the 16th. The Dow Jones Industrial Average closed at 40,659.76, up 96.70 points (+0.24%), the Nasdaq closed at 17,631.72, up 37.22 points (+0.21%), and the S&P 500 closed at 5,554.25, up 11.03 points (+0.20%). Concerns about the economy and labor market were expressed by Charles Evans, President of the Federal Reserve Bank of Chicago, and the number of housing starts fell below expectations, causing cautious sell-offs at the opening. Then, the Michigan Consumer Confidence Index, which was released later, exceeded expectations, easing concerns about the economy and strengthening buying back, leading the market to rise. Long-term interest rates continued to decline and were supported by strong expectations of a rate cut. The market rose and closed.
The Tokyo market started with more selling, as it was conscious of the fact that the U.S. stock market had risen for five consecutive sessions and that the weakening of the yen had stabilized. The Nikkei Average, which gradually reduced its decline after the first round of selling, recovered the 38,000-yen level and temporarily rebounded. The market has a solid footing, with last weekend's closing prices ending the morning trading in the prime market. The trading value of the prime market in the morning was about 1.8 trillion yen, decreasing the trading volume, making it a quiet market like the beginning of the week.
In the Nikkei 225 index, Ebara Corporation (6361), Komatsu (6301), and Murata Manufacturing (6981) were sluggish, and Mitsukoshi Isetan Holdings (3099) fell slightly. Societe Nexon (6526), Renesas Electronics (6723), Japan Exchange Group (8697), and Seven & I Holdings (3382) were sold.
In contrast, GS Yuasa (6674) was favored by reports from domestic securities companies, while Laser Tech (6920), Screen Holdings (7735), and SoftBank Group (9984) among semiconductor stocks were also bought. In addition, Nippon Yusen (9101) was bought as positive reports from domestic securities companies were viewed, and Mitsui O.S.K. Lines (9104) and Kawasaki Kisen Kaisha (9107) both rose. In addition, Sumitomo Dainippon Pharma (4506), Aozora Bank (8304), and Mazda (7261) were bought.
In terms of industries, mining, retail trade, machinery, service, and rubber products fell, while marine transportation, information and communications, iron and steel, banking, and precision instruments rose.
Although it has been only two weeks since its record plunge on August 5th, the Nikkei Average has recovered to the 38,000 yen level. The Tokyo stock market has regained its composure. However, in terms of trading volume by price range, there are many trades at the 38,000 yen level, which is considered to be susceptible to selling pressure awaiting a rebound. In the prime market, the trading value is tending to decrease, and with trading of around 4 trillion yen, there is a possibility that it may not be able to absorb selling pressure waiting for a rebound. With the Jackson Hole meeting in the United States coming up over the weekend, there is a possibility that the market may be in a deadlock at the 38,000 yen level until the weekend. The wait-and-see attitude is becoming stronger, and the Nikkei average is likely to remain quiet in the afternoon.