Japanese stocks fell sharply on the 20th, with the Nikkei Average closing down ¥841 at ¥64,075. Losses continued in response to movements in US stocks, while renewed selling pressure in the afternoon kept the TOPIX subdued.
The Nikkei Average fell sharply for a second straight session on the 20th, closing down ¥841 at ¥64,075. In response to mixed movements in US stocks, the market at times lost ground from a triple-digit decline during the day, while selling in AI-related stocks also weighed on sentiment. The loss temporarily reached four digits, but the index recovered in the ¥63,800 range and narrowed its decline toward the morning close.
However, selling pressure strengthened again in the afternoon, and losses widened once more as semiconductor stocks showed unstable price movements. The decline again approached four digits late in the session, but losses were contained in the ¥63,800 range, and the Nikkei Average finished above ¥64,000.
Trading value on the TSE Prime Market was approximately ¥6.79 trillion. By sector, Other Products, Retail Trade and Pharmaceuticals rose, while Nonferrous Metals, Banks, and Glass and Ceramics Products declined. Yoshinoya Holdings rose sharply, while Tsugami fell more than 9% in the afternoon despite barely reacting to the announcement of an upward revision and a dividend increase.
The Nikkei Average and TOPIX are both expected to remain in a tug-of-war around their 26-week moving averages, at approximately 4009p, with market participants continuing to assess whether a reversal is taking shape. Some expect a rebound, but others believe downside risks will become more prominent if the decline deepens.