The Nikkei Average fell back as caution over US CoreWeave persisted, but dip-buying narrowed the decline. The index closed at ¥64,916.70, while TOPIX edged higher.
The Nikkei Average closed at ¥64,916.70, down ¥407.59 from the previous day, as the sell-off in AI-related stocks continued after shares of cloud computing newcomer CoreWeave plunged in the US stock market. The index briefly fell below ¥64,000 during the session to a one-month low, but dip-buying subsequently emerged and narrowed the decline.
The sharp drop in CoreWeave shares and a 3.8% decline in the SOX Index in the US market created headwinds for related Japanese stocks, while higher oil prices also weighed on sentiment amid concerns about inflation.
AI- and semiconductor-related stocks, including Advantest and SoftBank Group, traded weakly, and the Nikkei Average temporarily fell as much as 2.28% to ¥63,831.78. The decline subsequently narrowed as after-hours US stock futures and the firm performance of the South Korean market were viewed favorably.
With corporate earnings, central bank meetings in Japan and the US, and the US midterm elections on the near-term calendar, some market participants said that if it is confirmed that fundamentals have not deteriorated, the decline in share prices may be limited to position adjustments. On the TSE Prime Market, advancing issues accounted for 62.1% and declining issues for 87.3%, while trading value was approximately ¥6.7835 trillion.