The Nikkei Average fell by more than ¥1,000 in the morning session to ¥65,266.67. Selling in AI- and semiconductor-related stocks reportedly led the market's decline.
The Nikkei Average traded ¥1,033.77 lower at ¥65,266.67 as of the morning session. Continued selling in AI- and semiconductor-related stocks was cited as the main reason for the decline.
Against a backdrop of weakness in US technology stocks, risk-off sentiment spread through the Japanese market, with position adjustments in growth- and technology-oriented stocks affecting the index.
Market participants noted that sector-specific declines were reducing investors' risk tolerance and said that the rise in volatility also warranted attention.