The Nikkei Average fell more than ¥2,000 in Tokyo trading after the market reopened, with selling continuing after the open. Uncertainty surrounding the US midterm elections and declines in semiconductor-related stocks weakened investor sentiment.
The Nikkei Average fell sharply after the market reopened, opening ¥108.70 lower than the previous day at ¥62,973.16. Selling then spread, widening the decline to ¥62,133.76 as of 10:01 a.m. TOPIX also fell, with selling particularly evident in semiconductor and AI-related stocks, while buying in some issues, including Fast Retailing, helped support the indices.
Uncertainty surrounding the US midterm elections and continued declines in semiconductor stocks are believed to have weighed on the Japanese market. In the US market, stock index futures fell, with NASDAQ futures at one point down about 1.8% and S&P 500 futures about 0.8% lower.
The decline in semiconductor stocks spread to major names including Advantest, Tokyo Electron, Kioxia and SoftBank Group. As concerns about the profitability of expanding data center investment spread, investors also became more cautious about the outlook for AI-related demand.
In the US market, AMD reported its results, with revenue including its data center segment increasing sharply year on year. While its share price rose in after-hours trading, the impact of the pre-announcement decline in semiconductor stocks had already spread to the Tokyo market. The focus now is whether AMD's strong results will provide a catalyst for a recovery in semiconductor stocks.