The Tokyo stock market was volatile, with the Nikkei 225 fluctuating, while TOPIX recovered from its morning low and turned positive. Selling in AI-related stocks coincided with buying back in bank stocks and gains in energy stocks, supporting the market.
The Nikkei 225 fell sharply during the 10 a.m. hour and then showed signs of rebounding, but moved back into negative territory. Against the backdrop of developments in the US market and heightened tensions in the Middle East, high-priced AI-related stocks have continued to come under selling pressure.
Meanwhile, the Tokyo Stock Price Index, or TOPIX, rebounded from its morning low and turned positive. Market sources said that, in terms of the market's underlying condition, the strength of non-tech stocks was particularly noticeable. Bank stocks saw buying back, while energy stocks also showed relative strength as crude oil prices remained elevated.
At the open, the Nikkei 225 started sharply lower than on the previous business day, with selling linked to the trend in US markets at the end of the previous week continuing. Market sources said that while selling in tech stocks was weighing on the market, the broader market was expected to remain firm.
Among individual stocks, Tokyo Electron was down approximately 3%, making the performance of AI-related stocks a focus of the market. Movements in the crude oil market also affected equities, while the relative strength of energy stocks provided support.