The Nikkei Stock Average fell sharply this week, ending down approximately 5% for the week. TOPIX was down 0.95% and showed signs of resilience, while the advance-decline ratio rose. Market volatility continues, including a major correction in AI-related stocks.
The Nikkei Stock Average fell sharply this week, including a session in which it dropped approximately ¥3,651 in a single day. Intensifying competition among Chinese semiconductor manufacturers and concern over inflation in the United States weighed on the market, triggering widespread selling centered on semiconductor-related stocks. Sharp declines in semiconductor-related stocks in particular pulled down the Nikkei, with major technology stocks such as Advantest, Tokyo Electron and SoftBank Group standing out for their declines.
While the Nikkei continued to fall, TOPIX showed unexpectedly firm performance. Marine transportation, steel, materials, banks, insurers and securities companies were among the sectors cited as having attracted buying. The market initially fell after the release of the U.S. CPI, but the Nikkei showed signs of recovering much of its sharp decline the following day, prompting some views that the market's underlying foundation had not been undermined. The advance-decline ratio rose, indicating a period in which the proportion of advancing stocks increased relatively.
With domestic and overseas earnings announcements ahead next week, activity aimed at identifying a market turning point is expected to intensify. Anicom Holdings and Rengo, the leading corrugated cardboard manufacturer, were cited as stocks to watch, with the impact of earnings and price revisions expected to be the focus for both. In the U.S. market, earnings from Meta Platforms and other companies and Disco's earnings announcement are scheduled, while attention is also focused on the September nationwide consumer price index.