The Nikkei average fell sharply at the start of the week, with its decline temporarily exceeding ¥1,500 at the open and dropping below ¥65,000. In the U.S. market, indications that the Fed may raise interest rates emerged, and selling in AI- and semiconductor-related stocks spread to the Japanese market.
The Nikkei average fell sharply at the start of the week, with its decline temporarily exceeding ¥1,500 in the morning and selling bringing it down to levels below ¥65,000. Selling pressure spread across the Japanese market, and the Nikkei average opened substantially lower than the previous day's close.
Reports that Fed Chair Warsh had suggested the possibility of an interest-rate hike in the U.S. market on the 28th prompted selling in AI and semiconductor stocks, and that trend reportedly spread to the Tokyo market. U.S. developments are being watched as a factor behind the Nikkei average's decline.
In the Tokyo market, selling in AI and semiconductor stocks pushed down the broader market and widened the decline. Investors are reportedly focused on market trends at the start of the week and the outlook for U.S. interest rates.