The Nikkei average fell sharply, recording its third-largest decline on record at the close. It plunged from the start of trading, falling by more than ¥3,600 at one point around midday, and ultimately ended trading down ¥3,318.
The Nikkei average fell progressively from shortly after trading began, showing a sharp decline before midday.
The Nikkei’s decline widened against a backdrop of concerns about U.S. inflation and a sharp drop in semiconductor stocks that day, with the close down ¥3,318 from the 14th, making it the third-largest decline on record.
Market participants cited 3 factors behind the decline. The first was a sharp drop in high-tech semiconductor stocks in the U.S. market and concerns about high valuations in AI investment. The second was concern about rising U.S. interest rates and an upside surprise in consumer prices. The third was concern over the domestic market having reached the ¥70,000 range.
Chief economist Nagahama (永濱) said the outlook would require determining whether the decline would stop as a one-off event or lead to a search for a second bottom, adding that close attention should be paid to movements in U.S. semiconductor stocks and corporate earnings.