The Nikkei average started the afternoon session at ¥64,358.73, down ¥3,385.56 from the previous day. Semiconductor-related stocks, led by Advantest and Lasertec, stood out among the decliners. Stock- and sector-specific trends indicated weak investor sentiment.
The Tokyo market began the afternoon session with the Nikkei average well below the morning close, falling to ¥64,358.73 and widening its decline from the morning closing level. Among the Nikkei constituents, Advantest and Lasertec were heavily sold, and declines in semiconductor-related stocks weighed on the market overall. In Asian equity markets, the Shanghai Composite Index remained in negative territory, while the Hong Kong market also opened lower.
By sector, nonferrous metals, electrical equipment and machinery were among the biggest decliners, while pharmaceuticals, retail and real estate were among the top gainers. The leading stocks by trading value on the Tokyo Stock Exchange Prime Market included Kioxia Holdings, Advantest, SoftBank Group, Taiyo Yuden and Lasertec. Selling led the market, while some domestic-demand stocks retained their funding.
Market participants are watching for the results of Taiwan Semiconductor Manufacturing Company (TSMC), which is scheduled to announce earnings today. Caution remains warranted over price movements in semiconductor-related stocks. Concerns over the burden of capital spending by artificial-intelligence-related companies and the impact of higher interest rates are strong, and funds may continue to flow into defensive stocks such as pharmaceuticals, retail and real estate.