The Nikkei Average fell again following declines in US technology shares. Although futures-led buying in the afternoon helped limit the decline, semiconductor-related stocks stood out on the downside.
Risk aversion intensified in Tokyo trading on 19 October, centered on semiconductor stocks, and the Nikkei Average fell sharply, at one point slipping below the ¥64,000 level. Selling spread in the morning as investors reacted negatively to the sharp drop in the SOX Index, while in the afternoon the Nikkei Average at one point recovered to the ¥65,000 level.
The Nikkei Average closed at ¥64,916.70, down ¥407.59 from the previous day, with trading volume estimated at 2.06192 billion shares. Trading value on the Prime Market was subdued, with 621 advancing issues and 873 declining issues.
Among individual stocks, semiconductor manufacturing equipment-related names such as LASERTEC were weak, while Taiyo Yuden, Murata Manufacturing and Ibiden also declined. Recruit Holdings, BayCurrent Consulting and Toho, by contrast, showed relatively strong performance. Movements in the top contributors to the Nikkei Average also drew attention.
Firm afternoon trading in futures and US equity index futures may have helped limit the overall decline. Although semiconductor-related stocks stood out on the downside, there were also signs that the distribution of stocks on the Prime Market avoided a broad-based sell-off.