The Nikkei average fell for a second straight session in the morning session. Selling spread from the opening as investors reacted negatively to the decline in US stocks, rising interest rates and higher oil prices, widening the market's losses.
The Nikkei average fell for a second straight session in the Tokyo stock market's morning session, declining approximately 0.84%, or ¥545.32, from the previous day. Semiconductor-related stocks were firm at the open, but subsequently lost momentum, sending the index lower.
Uncertainty over factors including rising interest rates, higher oil prices and concerns over a stronger yen remained high, and investors were increasingly waiting to assess the August PPI due to be released in the United States. Some AI and semiconductor-related stocks were bought in the morning, but they gave up their gains in the afternoon session.
On the TSE Prime Market, 535 stocks rose, 959 fell and 58 were unchanged. TOPIX ended the morning session at 4,032.89 points, down 0.34%. Trading value on the TSE Prime Market was ¥3,977,632 million.
Among individual stocks, Advantest was firm, while Tokyo Electron was weak. Data center-related stocks also saw sharp declines. Construction stocks were generally weak, while financial stocks were firm.
With next week's SQ calculation date approaching, some market participants said it could also become a source of volatility from a supply-and-demand perspective. With numerous events scheduled, including the release of US PPI tonight and policy meetings of the US and Japanese central banks, the market was expected to remain in wait-and-see mode.