Nikkei Falls 0.49% on Transport and Communications Sector Weakness
Japanese stocks closed lower on Tuesday (June 2nd), with the Nikkei 225 index down 0.49% at the end of the Tokyo session. The decline was led by pressure in the Paper & Pulp, Transport, and Communications sectors, leading to cautious market sentiment.
Market pressure appeared broad-based. On the Tokyo Stock Exchange, decliners outnumbered gainers, with 2,580 stocks declining, 994 advancing, and 199 unchanged. This suggests the decline was not confined to a handful of stocks, but spread across many issuers.
Although the index closed negative, several stocks posted sharp gains. AGC Inc. surged 9.09% to hit a five-year high, while Shift Inc. rose 8.81%. Isetan Mitsukoshi Holdings also rose 6.96% to reach a 52-week high, indicating continued selective interest in certain stocks amid the market correction.
On the other hand, the greatest pressure came from several issuers that experienced deep corrections. Nippon Electric Glass fell 9.97%, Mitsui Mining and Smelting weakened 7.97%, and Yaskawa Electric fell 7.25%. At the same time, the Nikkei Volatility Index rose 9.60% to 28.54, indicating the market was beginning to place a higher risk premium.
Cross-asset movements also provided context for today's sentiment. Oil weakened, with WTI July falling to US$91.44/barrel and Brent August to US$94.31/barrel, while August gold futures rose 1.34%. In the foreign exchange market, USD/JPY remained relatively stable at 159.72 and EUR/JPY rose to 186.07, while the US dollar index weakened slightly. The combination of weakening stocks and increased volatility signals that market participants are rebalancing risk positions amid changing global dynamics. (asd)
Source: Newsmaker.id
