Amid heavy selling across the board on growing worries about the financial situation in Europe and its likely impact on the global economy, the Japanese market opened on a weak note Friday. The yen's rise against the U.S. dollar as well as the euro is also contributing to the weakness in the market.
With stocks going on a free fall, the benchmark Nikkei 225 index plunged to a four-month low, dipping below the 8,700 mark. The index, which dropped down to around 8,640, is currently trading at 8,678.7, down 197.9 points or 2.2 percent from its previous close.
Automobile, banking, machinery, steel, non-ferrous metals, electric machinery and chemicals stocks are mostly down with sharp losses. Several stocks from retail, foods and pharmaceuticals sections are also drifting down sharply.
Mirroring widespread selling, only four stocks among the Nikkei 225 members are currently trading in positive territory. Among them, Shionogi & Co and Nippon Meat Packers are up 1.3 percent and 0.6 percent, respectively. Chugai Pharmaceuticals is trading modestly higher, while Fast Retailing is up just marginally.
Hitachi Construction Machinery is down more than 9 percent. Sumco Corp, Advantest Corp, Okuma Corp, Nikon Corp and Kobe Steel are trading lower by 6 to 7 percent.
Mitsubishi Paper Mills, JFE Holdings, Nisshin Steel, Tokyo Electron, Mitsubishi Motors, Nomura Holdings, Toho Zinc, Shinsei Bank, Mizuho Financial Group, Japan Steel Works and Panasonic Corp are down 4 to 6 percent.
Mitsubishi UFJ Financial, Mazda Motor, Showa Denko KK, Isuzu Motors, Honda Motor, Aozora Bank, Sharp Corp and Nippon Steel are also down sharply.
In economic news, the department store sales figures for April are due for release during the day. In March, nationwide sales were up 14.1 percent, while department sales from the Tokyo area spiked 26.7 percent.
In the currency market, the U.S. dollar traded at lower 79 yen level in early deals in Tokyo. The yen is currently trading at 79.40 to the dollar.
Among other markets in the Asia-Pacific region, Australia, Hong Kong, South Korea, Singapore and Taiwan are down sharply with their benchmark indices losing between 1.7 percent and 2.7 percent. Shanghai, Malaysia and New Zealand are also trading weak. Markets across the region ended on a mixed note on Thursday.
On Wall Street, stocks posted notable losses on Thursday, as traders reacted negatively to a disappointing batch of U.S. economic data. Lingering concerns about the financial situation in Europe also continued to weigh on the markets.
The major averages ended at or near their lows for the session. The Dow declined by 156.1 points or 1.2 percent to 12,442.5, the Nasdaq plummeted 60.3 points or 2.1 percent to 2,813.7 and the S&P 500 dropped 19.9 points or 1.5 percent to 1,304.9. While the Dow and S&P hit their four-month closing lows, the Nasdaq posted its lowest closing level in over three months.
Major European markets too ended notably lower on Thursday. The U.K.'s FTSE 100 index, the French CAC 40 index and the German DAX all ended lower by 1.2 percent.
U.S. crude oil futures tumbled to a six-month low on Thursday, paring early gains on some soft economic data from the U.S. Continued worries over the Greece crisis and demand worries following a sharper than expected rise in U.S. oil stockpiles also impacted oil prices.
Crude for June delivery dropped $0.25 or 0.3 percent to close at $92.56 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.