The Nikkei 225 extended its decline on the morning of the 10th, briefly falling below ¥65,000. Investor sentiment deteriorated as US stocks fell and oil prices rose, spreading selling across a broad range of stocks.
The Nikkei 225 extended its decline on the Tokyo stock market on the morning of the 10th, ending morning trading down ¥545.32 from the previous day at ¥64,597.46. The TOPIX fell 13.75 points to 4,032.89. AI and semiconductor-related stocks attracted buying immediately after the open, but selling gradually gained the upper hand amid uncertainty over the outlook, with the decline widening to as much as ¥956.10.
Share prices in the US market continued to fall while crude oil futures continued to rise. With investors also awaiting movements in long-term US interest rates and the release of the US PPI, concerns over higher interest rates, elevated oil prices and a stronger yen weighed on sentiment in Japan. Dip-buying emerged at times during the morning, but trading ultimately remained range-bound near the day's lows.
Among individual stocks, semiconductor-related Advantest was firm, while Tokyo Electron was weak. Mitsui Mining & Smelting and Fujikura, which had been bought as data center-related stocks, plunged, while construction stocks including Taisei Corporation also remained lackluster. Mitsubishi UFJ Financial Group rose among bank stocks, while Fast Retailing declined.
Across the market, the balance of gainers and decliners on the Tokyo Stock Exchange Prime Market showed selling predominating. Trading value was around ¥3.9776 trillion. With the major SQ calculation date scheduled for the 11th, trading is expected to remain cautious ahead of events including the US PPI release tonight and policy meetings of the central banks of Japan and the US.