The Nikkei average was approximately ¥1,044 lower than the previous business day in the Tokyo stock market on the morning of the 31st, falling rapidly after the opening. Concerns over a US rate hike and declines in semiconductor stocks dampened investor sentiment.
The Nikkei Stock Average fell sharply in morning trading on Monday the 31st, reversing lower after the long weekend. It stood at ¥65,361.60 at the morning close, down ¥1,043.96 from the previous day. Against a backdrop of remarks by Fed Chair Kevin Warsh suggesting the possibility of a rate hike, concerns over tighter US monetary policy spread, and selling prevailed mainly in AI- and semiconductor-related stocks.
The decline accelerated immediately after the opening, with the Nikkei average falling from a level ¥737.05 lower at one point to ¥1,573.46 lower as of 10:10 a.m. Dip-buying then emerged, narrowing the loss toward the morning close.
Declines in semiconductor-related stocks were particularly pronounced. Following the drop in the US SOX index at the end of the previous week, Advantest was temporarily down 7% in morning trading, while Tokyo Electron also fell approximately 4%. Market participants said that pressure around year-to-date highs and rising US interest rates were weighing on the market.
The background was speculation over US monetary policy, with views spreading that movements in long-term interest rates following Chair Warsh’s remarks would affect high-P/E growth stocks. The focus now is whether the decline in semiconductor stocks will remain limited to one-off profit-taking or mark the start of a correction.