The Nikkei Average fell ¥130 from the previous day to ¥66,131.98 in Tokyo trading on 27 August, declining for the first time in 3 days. It rose by more than ¥600 in the morning, but selling quickly spread on the view that trading catalysts had been exhausted, before dip-buying again gained the upper hand in the afternoon.
The Nikkei Stock Average ended trading in Tokyo on 27 August at ¥66,131.98, down ¥130.18 from the previous day and declining for the first time in 3 days. AI-related and semiconductor stocks led morning buying, with the index rising by more than ¥600 at one point, but selling quickly spread thereafter on expectations that trading catalysts had been exhausted, sending the index into negative territory.
Dip-buying gained the upper hand in the afternoon, and the Nikkei at times turned higher again. The Tokyo Stock Price Index (TOPIX) rose modestly, gaining 6.20 points to 4,117.22.
One factor cited as supporting the market was broad buying, particularly in AI-related stocks, following strong earnings from major US semiconductor company Nvidia. The Nikkei saw morning gains, afternoon declines and renewed momentum intersect over the course of the session.
Buying resumed toward the close, and prices moved with little clear direction around the previous day's close. Overall, the sense that trading catalysts had been exhausted weighed on the market, while short-term price swings repeatedly alternated between gains and losses.