There are some worries about inflation in the U.S. and the possibility of further rate hikes. Because of those concerns and the slide in U.S. shares, investors in Japan will likely take some profits.
The Fed's interest-rate increase concerns are receding on the back of evidence growth is slowing. Investors are taking that as a positive for stocks and that's serving as an incentive to buy right now.
Higher interest rates are definitely a negative for stocks and investors are worried that they may keep rising in the U.S..
Investors sell futures contracts speculating about a further fall in the cash market in the afternoon, so by the time the cash market opens, investors turn bearish -- it's a vicious cycle.
Investors have been sensitive to any U.S. economic reports. The housing report brought them some relief.
Investors may take a wait-and-see stance until the Bank of Japan comes out with its policy statement.
The market took a breather as investors believed share prices surged too far, too fast in recent sessions. Most market participants were also taking to the sidelines before the release of US employment data later today.