[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 39,362.63; -547.92

TOPIX; 2,692.14; -31.43

[Sector]: Mining, insurance, banking, transportation equipment, wholesale trade, etc. are the top decliners, while pharmaceuticals, precision instruments, and electric and gas industries rose. The turnover of the Tokyo Stock Exchange Prime includes Laser Tech <6920>, Mirrors HD <8897>, Kawasaki Shipbuilding <9107>, Dai-ichi Life HD <8750>, Recruit HD <6098>, Marubeni <8002>, Mitsui & Co. <8031>, Honda <7267>, SMC <6273>, INPEX <1605>, Nissan Motor <7201>, and Nomura <8604>, all of which fell. Meanwhile, Nitori Holdings <9843>, Rakuten Group <4755>, and Daiichi Sankyo <4568>, among others, have risen.

On the 16th, the Nikkei average started trading with a loss of 547.92 yen, dropping for the first time in 5 days. The previous day, the U.S. stock market declined. The Dow Jones Industrial Average closed at 42,740.42, down 324.80 points, and the Nasdaq closed at 18,315.59, down 187.10 points. Buoyed by favorable bank earnings, the market rose after the opening. However, a decline in the semiconductor sector weighed down the market, leading to a downturn. UnitedHealth Group, a managed healthcare company (UNH), also contributed to the Dow's decline, being heavily sold off and widening the decline towards the end.

Selling pressure dominated the Tokyo stock market today, as major indices in the U.S. stock market fell, dampening Tokyo stock prices. In particular, the Philadelphia Semiconductor Index, composed of major semiconductor-related stocks, fell by 5.28%, which was a larger decline compared to the Dow's 0.75% fall, putting pressure on semiconductor-related stocks on the Tokyo market. Additionally, the Nikkei average had risen by over 900 yen in the previous four days, making it prone to profit-taking sales and resistance to upward movement. While major indices fell in the U.S. stock market yesterday, the fact that long-term U.S. bond yields were falling in overseas markets supported stock prices in Tokyo. Furthermore, the Nikkei average reclaimed the 40,000 yen level for the first time in about 3 months during trading hours yesterday, creating optimism about the market's upside potential. However, selling pressure prevailed at the opening. Notably, the machinery orders statistics for August, released before trading began, showed a 1.9% decrease in orders (seasonally adjusted) for "private demand excluding ships and power," which serves as a leading indicator for private sector investment. The median forecast compiled by QUICK was a 0.2% decrease. Today, Nisui Construction <261A> was listed on the TSE Standard.

In sector performance, precision instruments, nonferrous metals, electric appliances, wholesale trade, securities and commodity futures are among the top decliners, while air transportation has seen an increase in value. Among the top trading values on the TSE Prime, companies like Disco<6146>, Lasertec<6920>, Nippon Electric Corp.<8035>, SoftBank Group<9984>, Screen HD<7735>, Lotte<6323>, Hoya<7741>, Keyence<6861>, SMC<6273>, TDK<6762>, Mercari<4385>, Advantest<6857>, SHIFT<3697>, etc., have experienced declines. On the other hand, Aeon<8267>, Kasumigaseki Capital<3498>, NTT<9432>, among others, have seen an increase.