[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 38,853.32; -479.42.

TOPIX; 2,695.79; -43.60.

Summary of the start of the afternoon session

In the afternoon, the Nikkei average started at a level close to the previous day's closing price of ¥38,861.09 with a decline of ¥479.42 to ¥38,853.32. During lunchtime, the Nikkei 225 futures traded in a range of ¥38,710 to ¥38,900, showing resilience. The USD/JPY exchange rate remained around ¥147.80-90 with a slight strengthening of the yen and weakness of the dollar since around 9:00 AM. In Asian markets, after the Shanghai Composite Index rose by over 10% at the start, it struggled to maintain the gains and is now up by about 5.6%. On the other hand, the Hang Seng Index in Hong Kong significantly declined by approximately 5.7% widening its losses.

In the afternoon, the Nikkei average started at a level similar to the previous close. The slight strengthening of the yen and weakening of the dollar compared to the morning, along with the significant decline in the Hang Seng Index, seem to weigh on Tokyo market prices. On the other hand, considering the Nikkei's increase of over ¥1,500 in the past three consecutive days ending with gains, some view today's decline as within a healthy adjustment range.

In the sectors, securities, banking, and wholesale trade are among the top decliners, while oil & coal products, electricity & gas, and precision instruments are showing gains.

In the top trading volume on the TSE Prime Market, Nissan Motor <7201>, Mitsukoshi Isetan <3099>, Mitsui & Co. <8031>, Sumitomo Mitsui <8316>, Daikin <6367>, Mercari <4385>, SMC <6273>, Kasumigaseki Capital <3498>, Mitsubishi Shoji <8058>, and Toyota <7203> are declining. On the other hand, Fujikura <5803>, Fujitsu <6702>, Advantest <6857>, Sumitomo Forestry <1911>, Shibaura <6590>, Terumo <4543>, Hitachi <6501>, and ENEOS <5020> are on the rise.