The Nikkei Average fell 3,318 points to 64,425 for its sixth consecutive decline. Semiconductor-related stocks collapsed amid a sharp sell-off in US AI-related stocks, leaving recovery of the Nikkei's key 26-week technical line as the focus.
The Nikkei Average fell sharply for a sixth consecutive session on the 15th, dropping 3,318 points to 64,425, with the decline reaching 4.9%. The TOPIX also closed down 2.4%, falling below 4,000 points on a closing-price basis. Trading value on the TSE Prime Market swelled to an estimated ¥10.14 trillion.
From the open, the Nikkei tested a break below 67,000, then successively fell below the 66,000 and 65,000 levels in the morning session. Although the sharp decline temporarily eased in the afternoon, the rebound remained sluggish, and Taiwan Semiconductor Manufacturing Company's earnings announcement failed to prompt short covering.
AI-related stocks led the decline, with Advantest falling 15% and dragging the Nikkei Average down by around ¥1,300. Lasertec, SCREEN Holdings, Kioxia Holdings, Taiyo Yuden, Murata Manufacturing and Ibiden recorded double-digit declines, while small- and mid-cap semiconductor-related stocks also fell sharply.
The index fell below key levels including the 26-week line and the 75-day and 25-day moving averages, making the deterioration in technical conditions increasingly apparent. The focus going forward will be whether selling of AI-related stocks in the US market runs its course and whether the index can recover to around the 26-week line.
Domestic-demand stocks in the retail, pharmaceutical and real estate sectors also showed signs of supporting the market, with some pharmaceutical and real estate issues rising. The high trading value indicated strong trading appetite among market participants, suggesting that some funds may be rotating from AI-related stocks into defensive issues.