Stocks tumbled in early trades in the Japanese market on Thursday, with investors indulging in some heavy selling following Wall Street's weak close overnight on the back of a negative reaction to the Fed's statement about an end to its asset purchase program by mid-2014.
However, with some front line stocks bouncing back on strong support at lower levels, the market regained some lost ground subsequently.
The benchmark Nikkei 225 index, which plunged to 12,966 after opening around 13,102, is currently trading at 13,121, down 124.2 points or 0.9 percent from its previous close.
Tokyo Tatemono, TDK Corp., Nikon Corp., Sumitomo Metal Mining, Isuzu Motors and Takashimaya are down 3 to 5 percent.
Heiwa Real Estate, Seven & I Holdings, Komatsu, Fujitsu, Inpex Corp., Trend Micro and Nippon Electric Glass are trading lower by over 2 percent. Pacific Metals, Suzuki Motor, Bank of Yokohama, J Front Retailing, Asahi Glass, Yahoo Japan and Japan Steel Works are also trading sharply lower.
Among the gainers, GS Yuasa is up more than 8 percent and Furukawa Co. is trading higher by nearly 5 percent. JFE Holdings, Oki Electric Industry, Nippon Paper Industries, Mazda Motor, Mitsui OSK Lines, Ricoh, Yokohama Rubber and Mitsubishi Paper Mills are up 2 to 4 percent.
Hino Motors, Taiheiyo Cement, Sumitomo Mitsui Financial Group, Mizuho Financial Group (MFJ), Fuji Heavy Industries, Fujifilm Holdings, Kawasaki Kisen Kaisha, Toshiba Corp. and Advantest Corp. (ATE) are also trading notably higher.
In the currency market, the U.S. dollar traded in the upper 96 yen range in early deals in Tokyo. The yen is currently trading at 96.48 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Hong Kong, New Zealand, Singapore and South Korea are down sharply. Shanghai, Malaysia and Taiwan are also down with notable losses.
On Wall Street, stocks declined sharply on Wednesday as a negative reaction to the Federal Reserve's monetary policy announcement weighed on the markets. The relatively upbeat comments regarding the economic outlook added to recent concerns about the Fed tapering its asset purchase program in the near future.
The major averages saw some volatility following the announcement from the Fed, closing firmly in the red. The Dow plunged 206 points or 1.4 percent to 15,112.2, the Nasdaq tumbled 39 points or 1.1 percent to 3,443.2 and the S&P 500 plummeted 22.9 points or 1.4 percent to 1,628.9.
Major European markets too ended weak on Wednesday. While the French CAC 40 index declined by 0.6 percent, the U.K.'s FTSE 100 index and the German DAX index both ended the day down by 0.4 percent.
U.S. crude oil settled lower on Wednesday after the Energy Information Administration's weekly oil report showed a better-than-expected increase in U.S. crude stockpiles last week. Crude for July delivery ended down $0.20 or 0.2 percent at $98.24 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.