The Nikkei continued to decline but held its losses in check, as the market adopted a wait-and-see stance ahead of Nvidia's earnings. While some AI-related stocks came under selling pressure, buying emerged in adjacent sectors, keeping the indices within a narrow range.
In Tokyo trading on the 24th, the Nikkei Stock Average continued to decline, but the morning session ended only slightly lower as selling momentum eased. With major semiconductor company Nvidia's earnings announcement approaching, the market adopted a stronger wait-and-see stance ahead of the Federal Reserve's Jackson Hole meeting. AI-related stocks fell, while semiconductor manufacturing equipment stocks attracted buying, leaving the broader market without a clear direction.
Among individual stocks, AI-related names were notably weak. Fujikura fell 3.5% and SoftBank Group fell 3.3%, both coming under selling pressure from the morning. By contrast, Tokyo Electron rose 2.1% as buying prevailed. Nvidia is scheduled to report quarterly earnings on the 26th, and reports that it plans to raise AI server prices against a backdrop of higher memory prices prompted some concern in the market.
Market participants said their long-term outlook for AI and semiconductor stocks remained unchanged, but many noted that it would be difficult for the market to make significant moves in the short term. Expectations of an interest-rate hike by the Bank of Japan also remained in the background amid uncertainty over the situation in the Middle East and concerns about high inflation, while rising long-term interest rates weighed on equities.
Many investors refrained from active trading ahead of monetary policy events in Japan and the United States while awaiting clues on US monetary policy from this week's Jackson Hole meeting. The market's direction could change depending on upcoming earnings announcements and interest-rate trends.