In Japan's stock market on Wednesday, 19 August, the Nikkei average fell for the second consecutive day, closing ¥2,134.31 lower at ¥65,326.42. Declines in semiconductor-related stocks were particularly notable, and the overall drop exceeded ¥2,300 at one point.
The Nikkei Stock Average fell sharply in Japan, declining for the second consecutive day, amid the effects of rising crude oil futures and interest rates in the US market the previous day.
Semiconductor-related stocks, including AI-related names, had been the market's leading sector, but a broad range of stocks declined. The Tokyo Stock Exchange's TOPIX fell 127.91 points, or 3.09%, to 41012.31, a significant drop. With uncertainty over the United States and Middle East weighing on markets alongside rising long-term interest rates, the Nikkei's decline spread across the market as a whole.
The second consecutive day of declines was driven by developments in crude oil prices and rising interest rates in the US market, with selling spreading mainly across AI- and semiconductor-related stocks. More than 70% of stocks listed on the TSE Prime Market fell, resulting in weak trading across the board.
The latest decline reflected concerns over supply and demand arising from a slowdown in the semiconductor market, and it was noted that overall market fluctuations in Japan could affect trading revenues.