In trading on the 15th, the Nikkei average in the Tokyo stock market fell sharply, briefly dropping more than ¥3,600. While semiconductor-related stocks continued to decline, funds shifted to low-valuation stocks. Some market participants said concerns over deteriorating finances at AI-related companies also had an impact as expectations for an FRB rate hike grew.
As of 13:49, the Nikkei average had fallen more than ¥3,600 from the previous day. Semiconductor-related stocks fell across the board, while domestic asset managers viewed the market as not having reached a blanket sell-off. Market participants said that amid rising expectations for higher interest rates, funds were moving from high-PER, interest-rate-sensitive stocks to low-valuation stocks such as pharmaceutical companies.
The Nikkei average opened the afternoon session at ¥64,358.73, affected by the global equity sell-off and declines in U.S. futures. The Tokyo Stock Price Index (TOPIX) was down approximately 103 points, falling below 4,000 points for the first time in about one month.
The morning closing level for the Nikkei average was ¥64,489.06, down ¥3,255.23 from the previous day, while TOPIX stood at 3,993.50. Trading volume was approximately 1.2 billion shares and trading value was approximately ¥4.535 trillion. By sector, nonferrous metals, electrical equipment, glass and ceramics products fell, while pharmaceuticals, retail, and pulp and paper rose.
Following declines in U.S. semiconductor stocks, the Nikkei average fell sharply from the open. Advantest, SoftBank Group and Tokyo Electron together reduced the Nikkei average by approximately ¥1,800. Selling in semiconductor-related stocks is expected to continue in the afternoon.