The Nikkei fell back by more than ¥1,300 in the Japanese market on 6 August, with AI- and semiconductor-related stocks leading the selloff. The yen traded in the latter half of the ¥157 range and bonds rose, reflecting broader market instability.
The Nikkei plunged as investors sold stocks following the previous day's sharp gains and in response to declines in US technology stocks, with the index at one point down more than ¥1,300. Selling was concentrated in AI- and semiconductor-related stocks, dragging down the broader market.
Stock-specific buying provided support. Kao announced an upward revision to its full-year operating profit forecast and the introduction of shareholder benefits. Kao shares rose during the day, while Omron shares surged after the company raised its operating profit forecast.
The yen traded in the latter half of the ¥157 range against the dollar. With the US employment report due, market participants remained cautious. Sony Financial Group sees ¥158.00 as a level of resistance, while, aside from concerns about intervention, there are few factors prompting aggressive yen buying.
Bonds rose as buying led the market lower in oil prices eased inflation concerns. Market participants said the market remains in a phase of assessing the impact of the AI investment cycle.