The Nikkei is likely to extend its decline in Tokyo trading on the 9th. Following the decline in U.S. technology stocks, selling of AI- and semiconductor-related stocks is expected to lead the market.
The downside target for the Nikkei is seen at around ¥1,000 below the previous close. Selling pressure is expected to build in trading on the 9th, with the extent of the Nikkei's decline in focus. The Dow ended the previous day with a modest rebound, and developments in the U.S. market are likely to influence the Tokyo market.
Following the decline in technology stocks in the U.S. market, selling of AI- and semiconductor-related stocks among the Nikkei constituents is expected to lead the market. There is growing speculation that the performance of these stocks could have a significant bearing on the Nikkei as a whole.
The Dow Jones Industrial Average closed at $51,231 in U.S. trading on the 8th, up $51 from the previous day, and developments in the U.S. market could affect the Japanese market going forward.