On September 5, the Nikkei average in the Tokyo stock market opened at 36,917.44, down 130.17 points from the previous trading day. The photo was taken at the Tokyo Stock Exchange in October 2020 (2024 Reuters/Kim Kyung-Hoon)
[Tokyo, 5th Reuters] – The Nikkei average in the Tokyo stock market fell by 130.17 points to 36,917.44, continuing its decline. Movements reflecting a strong yen and a drop in US tech stocks spread through the market. Although there was a moment where it briefly rose into positive territory after the greeting remarks by BOJ’s Takada at a financial and economic conference, it soon fell back into negative territory, resulting in unstable price movements. The Tokyo Stock Price Index (TOPIX) closed in positive territory.
The Nikkei average opened down 511 points and soon hit a low of 36,359.23, down 688 points. Afterward, it narrowed its decline and rose back into positive territory, recovering the psychological barrier of 37,000 points. Takada’s statement that “the impact of significant fluctuations in stock and foreign exchange markets in early August remains, so we need to monitor this trend closely and assess its impact” caused the Nikkei average to briefly rise when the dollar-yen rate indicated a weaker yen, but it was pushed back into negative territory amid unstable exchange rates.
Shingo Ide, Chief Equity Strategist at Nissay Asset Management, remarked, “The impression is quite dovish compared to Governor Ueda’s statements. It appears to follow Vice Governor Uchida’s remarks, indicating a cautious approach towards rapid rate hikes, alleviating some lingering concerns about early additional rate hikes” (Ide).
Additionally, there were voices in the market noting, “With concerns about a U.S. economic slowdown in mind, it is difficult for traders to buy on dips ahead of the employment statistics for August coming out this weekend” (domestic securities strategist).
The TOPIX closed the morning session up 0.39% at 2,643.83 points, with trade on the Tokyo Prime Market amounting to 2.067 trillion yen. Among the 33 sectors listed on the Tokyo Exchange, 26 sectors, such as warehousing and transportation, rubber products, securities, and land transportation, saw gains, while 7 sectors, including insurance and pharmaceuticals, experienced declines.
On the Tokyo Prime Market, the advance/decline numbers showed 1,299 rising stocks (78%), 310 declining stocks (18%), and 36 unchanged stocks (2%).
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