In Tokyo trading on the 23rd, the Nikkei average fell sharply throughout the day, at one point losing more than ¥1,400. Concerns over the profitability of AI investment and selling in semiconductor stocks accelerated the broader market decline, while U.S. earnings trends also weighed on the market.
The Nikkei Stock Average fell sharply for a second consecutive session in Tokyo trading on the 23rd, closing the morning session at ¥61,825.26, down ¥1,082.58 from the previous day. The index fell below ¥62,000 at one point during trading, while the TOPIX declined to 3924.70 in the morning session. The previous day, the 22nd, had also seen the Nikkei plunge ¥1,713.40 to ¥62,907.84, with declines in AI- and semiconductor-related stocks weighing on the market.
Market participants pointed to concerns over the recovery of AI investment in the United States as the primary cause of the decline, saying that caution over the profitability of AI businesses had increased following Meta's earnings announcement. In U.S. markets, Meta shares, the Nasdaq Composite and the SOX Index all fell sharply. Selling also led the decline in Tokyo, particularly among semiconductor-related stocks, while the weak outlook following Lam Research's earnings report again weighed on the market.