The Nikkei average fell back toward the end of the session to ¥70,074.13, down ¥609.85 from the previous day. Profit-taking in AI- and semiconductor-related stocks was the market's main focus.
In the Tokyo stock market on the morning of the 7th, the Nikkei average turned lower after initially rising, and the morning-session close was below the previous day's level. The market moved around the previous day's close early in the session before extending its decline toward the end of trading.
Profit-taking spread among AI- and semiconductor-related stocks with a high contribution to the Nikkei average, weighing on the broader market. Several major securities firms' market participants also pointed to this development.
At the same time, gains in US stocks provided support, and buying emerged shortly after the opening, allowing the Nikkei average to rise temporarily. In the afternoon, a tug-of-war between profit-taking and dip buying was expected to continue.
On the Prime Market, the number of declining stocks increased to more than half of the total. The Nikkei average ended at ¥70,074.13, while the TOPIX traded near its morning-session level.
Some market participants said downside was limited against the backdrop of higher US stocks, and the market continued to cool short-term overheating.
Market participants are expected to continue closely monitoring AI- and semiconductor-related stocks.