The Japanese stock market opened lower in morning trading, as escalating diplomatic tensions between Japan and China made the market more cautious about the Japanese economy's future prospects.

Selling pressure was most pronounced in the electronics and financial sectors, which were the main drivers of the index's decline. Some investors chose to reduce risk while awaiting clarity on developments in relations between the two countries.

Among large stocks, Hitachi Ltd. fell around 1.5%, while Sumitomo Mitsui Financial Group fell 1.6%. These movements added to the burden on the index as both are large-cap issuers.

Currency-wise, USD/JPY was at 156.77, higher than 156.31 at the Tokyo stock market close the previous day. The yen's movement is being closely monitored as it could affect export sentiment and the direction of the Japanese stock market.

Overall, the Nikkei Stock Average fell 0.5% to 51,687.44. Market players are now focused on monitoring the ongoing China-Japan issue, while awaiting the release of US economic data that could influence the direction of global risk sentiment.

Key Points (5 Points):

- The Nikkei fell 0.5% to 51,687.44 in early trading.

- Sentiment was weighed down by Japan-China diplomatic tensions.

- The electronics and financial sectors led the decline.

- Hitachi -1.5% and Sumitomo Mitsui -1.6% were in the spotlight.

- USD/JPY 156.77, with the market also awaiting US economic data.

Source: Newsmaker.(asd)