The Nikkei 225 widened its decline after opening lower in Tokyo trading on the 23rd, falling ¥747 as of 9:05 a.m. The sharp drop in the US SOX Index hit AI and semiconductor stocks.
The Nikkei 225 opened lower amid selling in Tokyo trading on the 23rd, with its decline widening after the open to ¥747 as of 9:05 a.m. AI-related and semiconductor-related stocks weighed on the market as technology stocks were broadly sold in the previous day's US trading. Selling pressure intensified in subsequent trading, although some buying on dips was also observed.
In the US market, the Dow Jones Industrial Average edged higher, while the Nasdaq Composite fell 2.59%. The SOX Index, which comprises semiconductor stocks, plunged 6.72%, reviving concerns about overheating in AI investment. In response, selling spread through the Tokyo market, particularly among leading semiconductor equipment makers and electronic component manufacturers.
Some market participants said the decline in US technology stocks the previous day had already been priced in. Persistently high oil prices in overseas markets made investors more cautious, while concerns about rising costs also prompted selling of economically sensitive stocks. At the same time, softer domestic long-term interest rates and the decline in US long-term interest rates supported the market at times.
First-half earnings announcements by domestic companies with March fiscal year-ends are expected to get into full swing next week, potentially increasing appetite for stocks reporting results. However, selling pressure was strong at the open, and the key near-term focus will be whether the correction in AI- and semiconductor-related stocks has run its course.