The Nikkei Average plunged after trading began, falling by more than ¥1,400 at one point. It closed at ¥64,916, down ¥407 from the previous day.
The Nikkei Average fell at the start of the week, with selling initially concentrated in AI-related and semiconductor stocks. Losses widened as trading began, with the index down more than ¥1,400 at one point and briefly falling into the ¥63,000 range. Against the backdrop of recent trading trends, the impact of the sharp decline in the first half of the month continues to weigh on market sentiment. The index closed at ¥64,916, down ¥407 from the previous day.
Market participants pointed out that concerns over massive investment by AI-related companies the previous week remain. In addition, uncertainty remains in the oil market as the situation in the Middle East continues. As a result, buying to cover positions, particularly in AI-related stocks, remained subdued.
With corporate earnings season about to get into full swing, market participants say the focus will be on whether AI-related companies’ investments are generating profits commensurate with their scale. External factors, including the impact of the New York market and interest-rate trends, may also continue to weigh on market movements.