The Tokyo stock market narrowed its losses from the previous day. AI-related stocks, including SoftBank Group and Fujikura, lifted the market, helping to mitigate the decline during the morning session.
The Nikkei Average was at one point down more than ¥600 from the previous day, but has since pared its losses. Rising crude oil prices and long-term interest rates, amid uncertainty over the situation in the Middle East, weighed on the market, while buying in some AI-related stocks provided support.
Market participants said demand for AI-related stocks remained firm, but also said the Nikkei Average was likely to continue moving without a clear direction amid inflation concerns.
At the open, the Nikkei Average started down ¥372.90 from the previous day at ¥68,847.35, as selling took the lead following declines in U.S. markets. AI-related stocks subsequently lifted the market at times.