Nikkei extends losses, opens 27 yen lower at 66,104; selling hits Orix and Sumitomo Electric — BigGo Finance

The Nikkei Stock Average extended its decline at the open on the Tokyo stock market on the 28th, starting trading at 66,104.49, down 27.49 yen from the previous day. The Tokyo Stock Price Index (TOPIX) opened nearly flat at 4,116.82, down 0.40 points.

Selling led at the opening bell. Firmness in crude oil futures and U.S. long-term interest rates in overseas markets the previous day weighed on sentiment. Some investors also refrained from aggressive buying as they awaited the speech by Federal Reserve Chair Warsh at the Jackson Hole symposium, scheduled for this evening Japan time.

On the other hand, downside was limited. In the previous day’s U.S. session, the tech-heavy Nasdaq Composite rose 1.57% and the Philadelphia Semiconductor Index (SOX), composed of major semiconductor-related names, gained 2.33%, far outpacing the Dow Jones Industrial Average’s 0.20% advance. This provided support for tech and semiconductor-related stocks in Tokyo. Following Nvidia’s sharp rebound after reporting quarterly results on the evening of the 26th U.S. time, buying flowed into Tokyo Electron (8035.T) and Advantest (6857.T).

U.S.-based Salesforce, which also reported earnings on the evening of the 26th, surged more than 20%. The rally in U.S. software stocks prompted buying interest in NEC (6701.T) and Fujitsu (6702.T).

The Nikkei’s 25-day moving average, situated around the 65,600 level, was seen as a downside support line, and with views that near-term downside room from here is limited, the index turned higher at times after the open. There were moments when it climbed to around the 66,500 level, roughly 420 yen higher than the previous day.

Among the most actively traded issues on the Tokyo Stock Exchange Prime Market, Orix (8591.T), Sumitomo Electric (5802.T), Kioxia Holdings (285A.T), Fujikura (5803.T), Furukawa Electric (5801.T), and Bic Camera (3048.T) declined. Meanwhile, Renesas Electronics (6723.T), Fujitsu, Hitachi (6501.T), Recruit Holdings (6098.T), Lasertec (6920.T), and Fanuc (6954.T) rose.

Recruit Holdings hit a new post-listing high on a stock-split-adjusted basis. Shin-Etsu Chemical and Nitto Denko advanced, while Fast Retailing (9983.T), Seven & i Holdings, and Sumitomo Electric fell.

By sector, retail, other financials, land transportation, nonferrous metals, and construction were among the top decliners. Electric appliances, other products, services, machinery, and transportation equipment were among the top gainers.

Japan’s seasonally adjusted unemployment rate for July, released before the market open, came in at 2.4%, down 0.1 percentage point from the previous month. The median market forecast was 2.5%. The July job-to-applicant ratio (seasonally adjusted) stood at 1.18, unchanged from the previous month. The median market forecast was 1.19.

The August Tokyo core consumer price index (preliminary mid-month reading), also released before the open, showed the index excluding fresh food rose 1.8% year-on-year. The median market forecast was for a 1.7% increase.

On the previous day, the 27th, the Nikkei opened 513.62 yen higher at 66,775.78, extending gains for a third straight day, creating an environment prone to profit-taking after the recent run-up.

In the market, buying of tech-related names following the rally in U.S. semiconductor stocks is intersecting with a wait-and-see mood ahead of Fed Chair Warsh’s speech. The direction of the yen and the trajectory of U.S. long-term interest rates also remain in focus.