The Nikkei Average fell more than ¥2,100 at one point in morning trading. Selling in AI and semiconductor stocks, uncertainty over the situation in the Middle East and rising long-term interest rates pushed the market lower.
The Nikkei Average fell sharply from the previous day, reaching ¥66,812.27 in the morning before extending its decline into the ¥65,300 range. Selling in AI and semiconductor-related stocks accelerated the broad market downturn.
Uncertainty over the situation in the Middle East and rising long-term interest rates also affected share prices in Japan and the United States, heightening investor caution.
US President Trump posted on social media that no talks or dialogue with Iran were planned. The Dow fell for the first time in 3 days against a backdrop of persistently high crude oil prices, and views were expressed that concern over inflation was driving long-term interest rates higher.
An analyst at a major securities firm said that Japan's long-term interest rate had reached its highest level in about 30 years, and that caution over further rate increases was likely to intensify.