The Nikkei Average narrowed its losses after entering the afternoon session. While AI-related semiconductor stocks continued to be sold, market participants said they believed the correction had run its course.
The Nikkei Average narrowed its losses from the morning session after entering the afternoon, opening down ¥823.03 from the previous day. Selling of AI-related stocks continued, but the decline gradually narrowed.
At the morning close, the Nikkei Average stood at ¥65,266.67, down ¥1,033.77 from the previous day, while the TOPIX stood at 4,031.04. Across the market, 33% of stocks were declining and 63% were advancing.
In the afternoon session, selling of semiconductor and AI-related stocks weighed on the index. Some market participants also said buying had spread across a broad range of stocks as lower crude oil prices eased inflationary pressures, and major brokerage analysts said the correction had run its course.
At the opening, the Nikkei Average fell ¥404.44 from the previous close to ¥65,896.00. The market is expected to remain weak in the afternoon, with the performance of AI-related stocks a key focus.