The Nikkei 225 fell for a second day, temporarily reaching the ¥61,000 level in the Tokyo market. The decline is thought to have been driven by weakness in AI-related stocks in US markets and expectations of tighter regulation.
The Nikkei 225 fell for a second consecutive day, reaching the ¥61,000 level during trading hours for the first time in approximately 3 months. The intraday decline exceeded ¥1,400, marking a substantial drop from the previous day’s close.
The 2-day decline had reached approximately ¥3,000 or more, with market participants linking it to fresh selling pressure on AI and semiconductor stocks. Some also attributed the move to developments in US markets affecting the Japanese market.
At the same time, there are expectations that AI regulation will be tightened, prompted in part by the vulnerability issue involving the programming language PHP, raising concerns that development could be impeded. This is thought to have heightened investor caution and triggered selling.