Tokyo stocks fell as selling in AI-related shares coincided with weak U.S. equities and concerns over geopolitical risks. The Nikkei 225 was down about 2.6%, while the Topix was also slightly lower.
Tokyo stocks fell sharply on Tuesday as selling in AI-related shares continued and weakness in U.S. semiconductor stocks weighed on the market. The Nikkei 225 was down 2.64% in early trading, with the closing level at 67,206.79, marking its fourth consecutive decline. The Tokyo Stock Price Index (Topix) also fell 0.56% to 4,081.76.
The market was affected by turmoil in U.S. equities, while rising geopolitical risks dampened investor sentiment. Maki Sawada (澤田 真紀), an equity strategist at Nomura Securities, pointed to concerns over the returns from AI hyperscaler investment, while energy price trends also acted as a factor curbing optimism. On the Nikkei 225, 129 stocks rose and 96 fell.
Marine transportation stocks performed strongly, while nonferrous metals fell 4.79%, the largest decline among sectors. The biggest decliners were Kioxia Holdings, down 13.02%, Taiyo Yuden, down 9.34%, and Kokusai Electric, down 9.19%. Among the gainers, Kawasaki Kisen rose 4.07%, Mitsui O.S.K. Lines gained 3.81%, and Pan Pacific International Holdings rose 3.36%.