The Nikkei Average fell sharply for a second straight session in the morning session on the TSE Prime Market, as declines in US semiconductor stocks spread to AI and semiconductor-related stocks. Oil and financial stocks remained firm against a backdrop of higher oil prices and interest rates, while sector rotation was also in focus.
The Nikkei Average was down 2.52% from the previous day in morning trading in the Tokyo stock market, standing at ¥67,292.39, down ¥1,738.53. Declines in US semiconductor stocks affected domestic AI and semiconductor-related stocks, weighing on the index.
AI-related stocks ranked among the largest negative contributors, with Advantest, SoftBank Group and Tokyo Electron together pushing the index down by approximately ¥1,200. Mining, oil and coal products, banks and insurance stocks remained relatively firm despite continued concerns over higher oil prices and interest rates.
While just under 70% of stocks on the TSE Prime Market rose, TOPIX ended the morning session at 4,085.91, down 0.46%, and the NT ratio fell into the 16.4 range. Trading value was ¥4,015,624 million, with stock movements reflecting a focus on sector rotation.
Koji Toda (戸田 浩司) of Resona Asset Management said that the rise in high-tech stocks in the latter half of September also reflected profit-taking, pointing to a cyclical imbalance in supply and demand as a background factor, and suggested that stock prices could recover once the move runs its course.
The article also includes related information on multiple factors explaining the index's movements and the views of market participants.