The Nikkei 225 fell sharply by more than ¥1,500 at one point on the morning of 31 August, dropping below ¥65,000. Selling in AI and semiconductor stocks has weighed on the market as expectations of a US interest-rate hike have strengthened.
The Nikkei 225 opened the week lower, with its decline exceeding ¥1,500 at one point in the morning and the index falling below ¥65,000. The sell-off in AI and semiconductor stocks in the US market spilled over into Tokyo, apparently pushing the Nikkei 225 lower.
In the US stock market on the 28th, selling in AI and semiconductor stocks led the market lower after Fed Chair Warsh indicated that an interest-rate hike was possible. This momentum spilled over into the Tokyo market, prompting views that declines in AI- and semiconductor-related stocks widened the Nikkei 225's losses.