The Nikkei 225 fell approximately 4.0% from the previous Friday to ¥62,693 this week in Tokyo trading, marking its second consecutive weekly decline. Selling of AI- and semiconductor-related stocks continued, with the broader market frequently moving sharply lower.
The Nikkei 225 fell 4.0% from the previous Friday to ¥62,693 this week in Tokyo trading, marking its second consecutive weekly decline. The TOPIX fell 2.5% from the previous Friday, while the Growth Market 250 Index declined 3.2%. The Nikkei 225 fell to its lowest level in approximately 3 months.
On Monday the 19th, the Nikkei 225 fell. Following a sharp decline in the US SOX index, a succession of stocks, particularly AI- and semiconductor-related names, moved sharply lower. Uncertainty over financing was a focus. On Tuesday the 20th, the index fell sharply for a second consecutive session, with the market continuing to search for a bottom. On Wednesday the 21st, it rebounded. SpaceX's strong earnings were well received, and the stock was bought in after-hours trading.
On Thursday the 22nd, the index fell sharply again. Selling of AI and semiconductor stocks came first, sending the Nikkei below ¥63,000. A decline in Lam Research in after-hours trading following its earnings announcement also cooled market sentiment. The index continued to fall on Friday the 23rd. The decline temporarily exceeded ¥1,400, and the index fell below ¥62,000 at one point.
Next week, earnings announcements from major US technology companies will come in succession, and the market may be swayed depending on developments during Japan's domestic earnings season. Attention will also be focused on developments in the US midterm elections and the results of monetary policy meetings in the US and Japan. Market direction is expected to depend on corporate earnings results.