【Fuji Tomi】Nikkei 225 Falls Below 20,000 as Yen Strength Deters, Suspected Short-Selling Also Observed

The Nikkei Stock Average closed lower, down 190.92 points (0.95%) to 19,979.90 yen. It fell below the 20,000 level for the first time since June 1. In the Tokyo foreign exchange market, the dollar/yen rate moved into the upper 109 yen range and below 110 yen, with selling led by exporters. In the late session, short-term players such as hedge funds were selling in the Nikkei futures and related markets, with the June Nikkei futures falling to 19,940 yen.

With the appearance of Komiyama, former FBI Director, testifying before Congress on the 8th and the approach of the UK general election, a cautious mood spread. Ahead of the weekend major options expiry (SQ) calculation date, stock indices showed volatile moves driven by futures, with some speculative selling observed.

The TOPIX also fell, ending at 1,596.44, down 13.53 points (0.84%). The trading value on the Tokyo Stock Exchange First Section was 2 trillion 467.1 billion yen, and the trading volume was 1.7483 billion shares. The number of decliners on the First Section was 1,635, advancers 292, and unchanged 90.

Nikkei futures closed with a black candlestick for the first time in five trading days. Although the chart maintained the conversion line (19,905 yen) and the 5-day moving average (19,962 yen) on a closing basis, there remains unease over not being able to hold above 20,000. While looking forward to testing the previous high of 20,250 on the 2nd, there is also expected a battle around the “gap” from the 1st to 2nd (19,890–19,920 yen).

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