The Nikkei 225 continued to decline from the opening of the morning session, trading more than ¥600 lower against a backdrop of weaker US stocks and moves in US energy prices and interest rates. Selling led declines in major stocks following the spillover from the previous day's drop in US stocks.
The Nikkei 225 fell as much as ¥700 and traded around the low ¥65,700s. Selling spread to Japanese stocks against a backdrop of the previous day's decline in US equities, with the morning drop reaching about ¥600.
In the US stock market, the Dow Jones Industrial Average ended ¥374 lower than at the end of the previous week, while US long-term interest rates rose amid surging US crude oil futures and concerns about inflationary pressure. In the Tokyo market, selling led declines in AI and semiconductor-related stocks, including Tokyo Electron.
TOPIX on the Tokyo Stock Exchange fell again. Among individual stocks, Advantest and Kioxia were sold, while Fast Retailing and Recruit also declined. By contrast, KDDI and Terumo attracted buying, while Itochu and Mitsui & Co. rose.
The spillover from weaker US stocks and relative movements among individual stocks drove the Nikkei 225's decline, with attention focused on afternoon trading.