The Nikkei extended its decline in the morning session as selling continued in AI-related stocks. Concerns surrounding U.S. CoreWeave, along with higher oil prices and U.S. interest rates, weighed on the market, pushing the Nikkei down more than 1% at one point, although losses narrowed toward the close.
In the morning session of the Tokyo stock market, the Nikkei Average was down 0.62% from the previous day at ¥64,512.35, weighed down by concerns surrounding a U.S. company that operates cloud services for AI applications. AI- and semiconductor-related stocks fell sharply, while weakness in South Korean stocks also had an impact.
Declines in stocks with a high contribution to the index stood out, with SoftBank Group and Fujikura falling sharply. After selling subsided, some semiconductor stocks turned higher and the Nikkei narrowed its losses.
The TOPIX ended the morning session at 4,031.85, down 0.88%. Trading value on the TSE Prime Market was ¥3.082168 trillion. By sector, steel, other products and precision instruments rose, while nonferrous metals, banks and marine transportation recorded notable declines.
Ichiyoshi Securities said that although concerns about the financing of emerging companies remained, semiconductor-related stocks could see buying ahead of earnings announcements. Some market participants also expected the market to enter another uptrend after the events had passed.