The Nikkei Average continued to decline for the 4th day. It ended the morning session at 36,568.05 yen (volume estimate: 0.82 billion shares), down 89.04 yen (-0.24%) from the previous day.
The U.S. stock market was mixed on the 5th. The Dow Jones Industrial Average closed at 40,755.75, down 219.22 points (-0.54%), the Nasdaq rose 43.36 points (+0.25%) to 17,127.66, and the S&P 500 closed at 5,503.41, down 16.66 points (-0.30%). The sell-off was driven by unexpectedly weak August ADP employment statistics, raising concerns about the labor market and economic slowdown. However, the market recovered as the August ISM non-manufacturing index unexpectedly improved, easing concerns about a slowdown in the economy. Nevertheless, profit-taking sales were driven by caution ahead of the U.S. employment report scheduled for release on the 6th, leading to a further decline in the Dow and widening losses. The Nasdaq, supported by a rebound in semiconductor maker Nvidia, rose slightly, ending mixed.
Despite the mixed performance of U.S. stocks, the Tokyo stock market started trading with a buying bias in response to a rebound against the recent decline. The purchasing speculation, believed to be pension-related, remained strong, pushing the Nikkei Average up to 36,898.28 yen, but the progress of the yen's appreciation and other factors reduced the gains. Given the high caution towards tonight's U.S. employment report, active trading was withheld, resulting in a stalemate at the previous day's closing level.
Among the stocks included in the Nikkei Average, JFE Holdings <5411> was sold off due to negative reports from securities companies. Defense-related stocks such as Mitsubishi Heavy Industries <7011> and Kawasaki Heavy Industries <7012> also declined. In addition, Hitachi <6501>, Keyence <6861>, Daikin <6367>, SMC <6273>, and Laser Tech <6920> all fell.
On the other hand, Shiseido Co., Ltd. <4911>, which has been updating its year-to-date low, has seen buying considered to be a technical rebound, as well as Meiji Holdings <2269>, AEON <8267>, Nitori Holdings <9843>, and other stocks that benefit from a stronger yen have risen. In addition, Terumo <4543>, Shimizu Corporation <1803>, Sekisui House <1928>, Kao <4452>, and Fast Retailing <9983> were bought.
In terms of industry sectors, the electric machinery, machinery, iron & steel, nonferrous metals, and securities and commodity futures trading industries declined, while the electric and gas industry, precision instruments, warehousing and transportation-related industries, construction industry, and retail trade industry rose.
In the afternoon session of the Tokyo market, there is a growing sense of caution towards tonight's US employment statistics, which is leading to a wait-and-see attitude and the Nikkei Stock Average is expected to be in a stalemate around the previous day's closing level. With the yen tending to strengthen and the dollar weakening, there is a possibility of a further decline in the Nikkei Stock Average due to the progress of yen appreciation, but relatively speaking, the exchange rate during Tokyo time has been relatively stable, so the possibility of a further decline in the Nikkei Stock Average in the afternoon is considered to be low.