[Nikkei Stock Average and TOPIX (Table)]

Nikkei Average; 38,656.75; -44.12

TOPIX; 2,725.79; +9.80

Summary of the start of the afternoon session

In the afternoon, the Nikkei Average started to decline from the morning close (JPY 38,787.80), falling by JPY 44.12 to JPY 38,656.75. The Nikkei 225 futures during lunchtime were weak in the range of JPY 38,590 - JPY 38,790. The dollar-yen exchange rate has been slightly stronger yen and weaker dollar since around 9 a.m., with 1 USD = JPY 146.60-70. While the Asian market is generally down about 0.5%, the Hang Seng Index in Hong Kong briefly reversed its morning decline and is now down about 0.3%.

In the afternoon session of the Tokyo market, selling pressure was observed at the opening compared to the morning close. There is a view that the expectation of a US interest rate cut has already been factored into stock prices, and some investors are refraining from active buying as they want to assess data such as the August US employment statistics, which will be announced on the 6th of this week.

In terms of sectors, precision instruments, marine transportation, and machinery are among the top decliners, while banking, insurance, and textiles & apparels are among the top gainers.

In the top trading value on the Tokyo Stock Exchange Prime Market, TOWA <6315>, Fujikura <5803>, HOYA <7741>, Laser Tech <6920>, DISCO <6146>, SMC <6273>, Sosei Next <6526>, Kawasaki Heavy <7012>, TDK <6762>, and Mitsubishi Heavy <7011> are declining. On the other hand, Mercari <4385>, Sumitomo Forestry <1911>, Hokkaido Electric Power <9509>, Fujitsu <6702>, NEC <6701>, SHIFT <3697>, Seven & i Holdings <3382>, Mitsubishi UFJ Financial Group <8306>, TEPCO Holdings <9501>, and Mitsui Sumitomo <8316> are rising.