The Nikkei average fell by more than ¥3,600 at one point and closed below ¥65,000. Related stocks were sold in Tokyo in response to developments in U.S. AI-related stocks.
The Nikkei average fell by more than ¥3,600 at one point during trading. Ultimately, it closed below ¥65,000, reaching a level not seen in about 1 month. The TOPIX also fell sharply, weighing on the broader market along with other major indexes.
The Nikkei’s intraday decline exceeded ¥3,600 at its widest point, and the index remained sharply lower. It was the first time in about 1 month that the close had fallen below ¥65,000. TOPIX closed at 3999.34, down 97.44 points.
In the U.S. market, the bonds of CoreWeave, a startup engaged in AI-related businesses for high-performance data centers, plunged in price. This strengthened efforts in Tokyo to assess the profitability and demand for AI investment, and related stocks were sold.
Concerns about the outlook for AI demand spread to semiconductor stocks. Advantest, a major semiconductor testing-equipment maker, plunged 14.95%, while persistently high crude oil futures prices also cooled investor sentiment.