Stocks opened on a weak note in the Japanese market on Tuesday with investors following a weak lead from the U.S. and European markets and indulging in some heavy selling in several blue chip stocks from across various sectors. The yen's surge against the euro also contributed to the negative start in the market.
As stocks tumbled on selling pressure, the benchmark Nikkei 225 index plunged to a 3-month low after opening with a strong negative gap.
The index, which opened more than 60 points down, is currently trading at 8,861.3, down 112.5 points or 1.2 percent from its previous close.
Oki Electric Industry shares are down more than 8.5 percent. NGK Insulators, Mazda Motor, Advantest Corp, Kawasaki Kisen, Japan Steel Works, Unitika, Tosoh, Casio Computer, Ebara Corp, Sumco Corp, Mitsui Chemicals and Yokogawa Electric are down 4 to 6.5 percent.
Shinsei Bank, Resona Holdings, Nippon Sheet Glass, Nippon Light Metal, Mitsubishi Chemical Holdings, Sharp Corp, JFE Holdings and Fuji Electric are all trading lower by over 3 percent.
Nomura Holdings, Mitsubishi Electric, Sumitomo Chemical, Olympus, Japan Tobacco, Kansai Electric Power, Mitsubishi Materials and Nippon Electric Glass are also trading sharply lower.
Among the stocks that are bucking the trend and trading higher, Taiyo Yuden is up nearly 6 percent, MEIJI Holdings is trading 3.5 percent up and Dentsu Inc is up 2.3 percent.
Ajinomoto Co Inc., KDDI Corp, Nippon Meat Packers, JGC Corp, Takara Holdings and Fast Retailing are up 0.5 to 2.3 percent.
In the currency market, the U.S. dollar traded in the upper 79 yen range in early deals in Tokyo. The yen is currently trading at 79.86 to the dollar.
Among other markets in the Asia-Pacific region, Australia, Malaysia, New Zealand, South Korea and Taiwan are trading notably lower, while Hong Kong and Singapore are down with modest losses. Markets across the region turned in a mixed performance on Monday.
On Wall Street, stocks ended notably lower on Monday amid lingering worries about the financial situation in Europe following the political uncertainty in Greece.
After falling sharply at the open, the major averages did recover midway through the session but lost their way again and ended in the red. The Dow drifted down 125.2 points or 1 percent to 12,695.4, the Nasdaq dropped 31.2 points or 1.1 percent to 2,902.6 and the S&P 500 slid 15 points or 1.1 percent to 1,338.3.
Major European markets declined sharply on Monday. While the French CAC 40 index plunged 2.3 percent, the U.K.'s FTSE 100 index and the German DAX index tumbled by 2 percent and 1.9 percent, respectively.
U.S. crude oil futures plunged to settle at a five-month low on Monday, amid demand worries due to the political imbroglio in Greece. Crude for June delivery dropped $1.35 or 1.4 percent to close at $94.78 a barrel on the New York Mercantile Exchange.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.