The Tokyo market saw the Nikkei suffer a sharp decline of ¥3,318, its third-largest fall on record, extending its losing streak. Major indices remained weak as risk-off sentiment intensified following turmoil in AI-related stocks in the previous day's US market.
The Nikkei opened sharply lower and traded down ¥3,255 at ¥64,489 in the morning session. Selling pressure then intensified, with the index reaching ¥64,092 at noon to set a new low for the day. Although the decline eased somewhat in the afternoon, the Nikkei ultimately closed down ¥3,318 at ¥64,425. TOPIX ended down 97 points at 3,999, while the TSE Growth 250 ended after a third consecutive decline.
Among individual stocks, risk aversion spread across semiconductor-related names. Kioxia Holdings fell sharply, ending down 12.3% at ¥12,880. Saizeriya rebounded, rising 7.6% after forecasting record-high profit for the fiscal year ending August 2027. Ryohin Keikaku rose 10.7% to ¥4,855 after raising its operating profit forecast for the current fiscal year. IDOM announced that net profit was expected to decline for the current fiscal year, sending its shares temporarily down 24.0% to ¥886. Global Security Expert continued to fall, ending down 1.9% at ¥6,380.
View Point reported that selling prevailed in AI- and semiconductor-related stocks after the sharp fall in CoreWeave bonds, with TSMC's earnings announcement attracting attention the following day. As risk-off sentiment becomes more pronounced, the focus is expected to be on whether the company's outlook can provide a catalyst for a stock-price rebound.