The Nikkei 225 fell more than ¥2,300 at one point, closing at ¥65,326, down ¥2,134. With oil prices remaining elevated due to the Middle East situation and concerns over rising interest rates intensifying amid inflation fears, selling spread, led by AI and semiconductor-related stocks.
The Nikkei 225 fell from shortly after the start of trading, at one point dropping more than ¥2,300. Although the decline narrowed toward the end of the session, it closed down ¥2,134 from the previous day at ¥65,326.
The escalating tensions in the Middle East have kept oil prices elevated, heightening concerns about global inflation and intensifying fears of rising interest rates. This affected overseas markets and spilled over into Japan's market.
Market participants pointed to the possibility that strong corporate earnings could provide support, while analyzing that concerns over rising interest rates were particularly pronounced.
The decline reflected a pattern of selling led by growth stocks, against a backdrop of concerns over the situation in the Middle East and the direction of monetary policy.