The Nikkei Average fell more than ¥1,500 at one point after the three-day weekend, with losses widening after trading began. The decline in the US market, concerns over the situation in the Middle East and rising crude oil futures have been cited as factors driving selling.
The Nikkei Average fell after the three-day weekend, opening down more than ¥400 and then extending its losses to record a sharp decline of more than ¥1,500 at one point. The Nikkei Average temporarily reached the ¥67,000 range, falling to an intraday level not seen in about 2 weeks.
Selling spread across the market, centered on semiconductor-related stocks. Shares of Tokyo Electron and Advantest declined, as the fall in the US market's AI semiconductor stock index also affected the Tokyo market.
Some market observers said that heightened tensions in the Middle East reported over the weekend, along with persistently high crude oil futures prices, weighed on investor sentiment. Market participants view the rise in crude oil prices as one factor behind the selling pressure.
Market attention is focused on trading trends, with the direction of the market potentially changing depending on subsequent developments.