Selling dominated the Tokyo market, particularly in AI and semiconductor-related stocks, sending the Nikkei 225 sharply lower. The index closed at ¥65,326.42, down ¥2,134.31 from the previous day, a decline of more than 3%.
In addition to declines in the major U.S. stock indexes the previous day, a stronger risk-off mood toward AI and semiconductor-related stocks kept the Japanese market weak from the morning session. The Nikkei 225 rapidly widened its losses after opening and moved lower again in the latter half of trading, remaining near its lows toward the close.
The Nikkei 225 closed at ¥65,326.42, down ¥2,134.31 from the previous day, for a decline of more than 3%. TOPIX also fell more than 3%, and decliners accounted for the majority of stocks on the TSE Prime Market.
Among individual stocks, Kioxia, which led the market in trading value, plunged more than 12%, while Fujikura and Furukawa Electric also fell sharply. Takeda Pharmaceutical and Mitsui O.S.K. Lines, meanwhile, showed relative resilience, and stocks such as Bengo4.com and Mercari also attracted notable buying at times. Overall, the impact of AI and semiconductor-related stocks was a major factor behind the market's decline.