Tokyo stocks sharply reversed lower in the morning session on the 30th. Renewed concern over earnings at AI-related companies and declines in semiconductor stocks weighed on the market, sending the Nikkei Average sharply lower.
During the morning session, the Nikkei Average sharply reversed lower to ¥63,019.78, down ¥1,639.69 from the previous day, while the TOPIX fell 52.05 points to 3,951.23. The backdrop was renewed concern over the financial impact of AI investment after earnings at U.S. AI-related companies indicated deteriorating free cash flow. Declines in semiconductor-related stocks pushed the market lower, spreading selling across the Tokyo market.
Trading volume was 1.04926 billion shares and trading value was ¥3.9088 trillion. By industry, nonferrous metals, electrical equipment, glass and ceramics products, and machinery declined, while marine transportation and retail rose.
As of 10:17 a.m., the Nikkei Average's decline had temporarily exceeded ¥1,800, with the index falling below ¥63,000 at one point. AI-related stocks including Advantest, Tokyo Electron and SoftBank Group weighed on the market, and movements in the U.S. market affected by Alphabet's earnings were believed to have spread to Tokyo. Related stocks including Ibiden recorded large percentage declines, while bank stocks also moved lower.
At the open, the Nikkei Average began the morning session down ¥315.10 at ¥64,344.37, with selling led by technology stocks. There was also speculation that the market would continue to be driven by developments in the U.S. market.