The Nikkei average fell for the first time in three days. It closed at 38,749.25 yen (approx. 860 million shares) after the morning session, down 173.78 yen (-0.45%) from the previous day.
The US stock market was mixed on the 3rd. The Dow Jones Industrial Average closed at 38,571.03, down 115.29 dollars (-0.30%), the Nasdaq rose 93.65 points (+0.56%) to 16,828.67, and the S&P 500 rose 5.89 points (+0.11%) to 5,283.40. The May ISM Manufacturing Index unexpectedly worsened, and payment prices fell, leading to buying on expectations of interest rate cuts, causing a rise in the opening. However, the Dow turned to selling due to concerns about an economic slowdown, and remained sluggish throughout the day. On the other hand, the Nasdaq supported the market by bottoming out on buying driven by the recovery of semiconductor Nvidia and the view of lower interest rates, ending mixed.
Although the US stocks were mixed, the Tokyo market opened with a dominance of selling due to the fact that the exchange rate fluctuated to a yen appreciation of about 1 yen compared to the closing time of the previous day at 156 yen per dollar. The Nikkei average was seen to widen its decline by over 300 yen at one point. After the first round of selling, the Nikkei stopped falling when the 25-day moving average line was considered a downside support line at the 38,549 yen level, but it remained in negative territory throughout the day.
In the Nikkei average adoption stocks, Inpex <1605>, ENEOS Holdings <5020>, and Idemitsu Kosan <5019> fell due to the drop in crude oil prices. In addition, financial stocks such as SOMPO Holdings <8630>, Chiba Bank <8331>, Credit Saison <8253>, Resona Holdings <8308>, and Tokyo Marine Holdings <8766>, which had been bought recently, were weak.
Meanwhile, Recruit Holdings <6098> updated its all-time high since its listing, and Mercari <4385>, Nexon <3659>, and Oriental Land <4661> rose. In addition, Yamaha <7951>, Fujitsu <6702>, Furukawa Electric <5801>, Sony Group <6758>, and Mitsubishi Heavy Industries <7011> were bought.
In terms of industry, mining, insurance, petroleum and coal products, electrical and gas utilities, and wholesale trade fell, while service industries, other products, electric appliances, air transportation, and warehouse and transportation-related industries rose.
The Nikkei average is in a narrow range between the 25-day moving average line and the 75-day moving average line. The Topix, which was approaching its year-to-date high, also experienced a decline rate similar to that of the Nikkei average, due to selling of shares with a large market capitalization such as Toyota Motor <7203> and Honda <7267> as well as financial stocks, in response to the automobile certification fraud problem. With important economic indicators related to employment being announced in the United States this week, the buying and selling mood in the Tokyo market is weak due to difficult clues. From the situation of difficult clues, the Nikkei average and the Topix in the afternoon are expected to remain within the range of price fluctuations of the upper and lower limits set in the morning session.