The Nikkei fell to the ¥60,000 range at one point against a backdrop of selling in AI-related stocks, but short covering limited the decline, and price movements remained subdued toward the close.
Selling in AI-related stocks weighed on the market, sending the Nikkei Stock Average sharply lower to the ¥60,000 range at one point during trading. Although there were periods when investors became more risk-averse, selling pressure did not disappear entirely, while short covering emerged from the middle of the session onward and narrowed the decline.
As short covering progressed toward the end of the session, the Nikkei recovered at times to around the previous day's close, limiting the decline toward the close. Overall market trends appeared to be driven by movements in AI-related stocks, while trading in individual names also had an impact.