The Nikkei average was down 992 yen as of 9:05 a.m., with its decline widening further after the open. Market sentiment turned cautious against a backdrop of weakness in AI-related and semiconductor stocks and rising crude oil futures, while the Dow in the U.S. stock market remained firm and an increase in earnings announcements supported stock-picking appetite.
The Nikkei average widened its decline after the open and was down 992 yen as of 9:05 a.m. Selling continued to lead trading in the Tokyo market, in contrast to attempts to buy a rebound after the three-day losing streak in the previous week.
The burden on AI-related and semiconductor-related stocks, along with the sharp decline in the SOX Index over two days, was cited as a factor pushing down the market. Meanwhile, uncertainty over the outlook for the situation in the Middle East and higher crude oil futures prices in overseas markets made investors more cautious.
The Dow average remained firm in the U.S. stock market, providing support for the Nikkei market. The Nikkei widened its decline after the open, while appetite for stocks with strong results was said to have supported the market as quarterly earnings announcements increased.
In response to the latest moves, some market observers believe that conditions are likely to remain conducive in the short term to buying on dips and purchases aimed at an autonomous rebound.