The Nikkei Average suffered its sharpest decline in four sessions as risk-off selling spread following falls in U.S. AI-related stocks and earnings reports from major companies.
The Nikkei Average suffered a sharp decline on the 30th, reversing the previous day's move. It closed at ¥63,290.11, with estimated trading volume of 2.49 billion shares. Selling of technology stocks in the U.S. market and deteriorating investor sentiment weighed on the market. The index fell after the open in response to the previous day's U.S. market performance and dropped to ¥62,711.42 toward the end of the morning session.
Across the market, more than 800 TSE Prime-listed stocks rose, while sectors including non-ferrous metals and electrical equipment declined. The performance of stocks supporting the Nikkei's decline and sector-specific moves influenced the market's direction.
Major U.S. stock indexes fell on the 29th. Earnings from Amazon.com and Intel were seen as market factors, reviving concerns about the profitability of U.S. AI investment. As a result, leading AI-related stocks were frequently sold in the Tokyo market as well.
In the domestic market, some investors sought to avoid volatility in AI-related stocks, with funds also flowing into domestic-demand and defensive stocks. However, dip-buying emerged again in the afternoon, at times suggesting underlying market resilience.