Nikkei Opens Lower; Oil at $100 Weighs on Sentiment

The Nikkei 225 index traded lower in early trading on Thursday (Sept. 10), extending losses from the previous session. The index initially fell about 0.6% to the 64,760 level before facing further pressure, with the Japanese market indicator subsequently hovering around 64,570—a decline of approximately 0.9%.

The primary pressure stemmed from a surge in energy prices, with Brent crude holding above $100 per barrel. Escalating tensions between the United States and Iran heightened concerns regarding supply disruptions from the Middle East, while also raising the risk of inflation and increasing operating costs for Japanese companies heavily reliant on energy imports.

The construction and retail sectors were among those under pressure in early trading. Taisei fell about 4.9%, while Ryohin Keikaku declined approximately 2.4%. Major stocks such as Tokyo Electron and Fast Retailing also traded lower, although some banking stocks managed to post gains.

Investors are also closely monitoring yen movements ahead of next week's Bank of Japan (BOJ) meeting. Expectations for a BOJ rate hike have strengthened following a rise in Japanese government bond yields, while the yen's appreciation in recent days has placed additional pressure on exporters.

Beyond domestic factors, Wall Street's overnight weakness also dampened risk appetite. US markets closed lower after oil prices breached $100 and the 10-year Treasury yield remained elevated at around 4.84%, fueling concerns that inflationary pressures could keep global interest rates higher for longer.