Japanese stocks fell on the 19th. Bonds rose as concerns over funding for AI-related companies and selling of semiconductor stocks spread, while the yen was little changed at around ¥158 to the dollar.
Selling of semiconductor stocks accelerated in the U.S. market at the end of last week amid rising credit risk, putting pressure on AI and data center stocks. Japanese markets followed suit, with AI and semiconductor-related stocks posting notable declines.
The U.S. SOX Index fell for an eighth consecutive session on the 16th, marking its longest losing streak since 2008. Shifts in investment flows and concerns over the valuations of AI-related stocks spread across the broader market.
Reports also emerged that bond prices of emerging U.S. AI cloud companies had fallen, while investors pushed back against the valuation indicated by the IPO of the U.K.'s Nscale. This further intensified concerns over funding for semiconductor and AI-related companies.
Buying prevailed in bonds, while the yen remained little changed at around ¥158 to the dollar. Market conditions may be driven going forward by the funding environment for AI-related companies and developments in the semiconductor sector.