The TSE opened higher but subsequently turned lower, with SoftBank Group suffering a sharp decline. Higher U.S. CPI and caution over AI investment influenced market movements.
The Nikkei Average opened higher for a third straight session on the morning of the 11th, briefly rising to ¥60,660, but buying then ran its course and the index turned lower, at one point falling by more than ¥100.
Buying of AI-related stocks was limited, while SoftBank Group opened sharply lower, with its decline temporarily exceeding 10%. SoftBank Group's earnings resulted in a net loss, prompting a renewed spread of caution toward AI investment, according to market views.
The growth rate of the U.S. Consumer Price Index in October exceeded market expectations, strengthening expectations that the Federal Reserve would implement an additional rate hike at its next meeting. As a result, the U.S. long-term interest rate also rose back into the 5% range, spreading selling across stocks including semiconductor-related names.
The TOPIX also extended its gains, with improving supply-demand conditions continuing for undervalued domestic-demand stocks and bank and securities stocks.
Fast Retailing, Sumitomo Realty & Development, Nexon and Terumo traded relatively high, while Ibiden, Tokyo Electron and Fujikura were lower.