Following the decline in U.S. markets, the Nikkei Average fell in morning trading in Tokyo. Semiconductor and AI-related stocks weighed on the market, although it showed firmness at times.
The Nikkei Average stood at ¥64,534.03 on the morning of the 19th, down ¥790.26 from the previous weekend. It had briefly fallen by more than ¥1,400 in the morning, but the decline narrowed as overseas investors bought back stock index futures. The domestic market remained driven by movements in AI and semiconductor stocks, with the decline in the SOX weighing on the market.
In the U.S. stock market the previous weekend, the SOX fell 3.8% and the Nasdaq Composite fell more than 2%, with semiconductor and technology stocks broadly sold. With long-term U.S. interest rates remaining elevated in the 5% range, concerns over the ability of AI-related companies to raise funds and sustain investment weighed on the market. CoreWeave's sharp share-price decline was also cited as a factor that amplified investor anxiety.
The Nikkei Average fell below the ¥64,000 milestone, but subsequently narrowed its decline and remained firm in the ¥64,000 range. Domestic-demand defensive stocks attracted buying, while trading house and real estate stocks also performed well. At the morning close, trading value on the TSE Prime Market was approximately ¥3.2947 trillion and trading volume was approximately 917.96 million shares.
Among individual stocks, declines in Fast Retailing, Advantest and Tokyo Electron stood out, while KDDI, BayCurrent, Recruit and Kioxia rose. Movements in major stocks, including NT, influenced the overall market trend.