Tokyo stocks fell sharply on 28 July, with the Nikkei 225 closing at 62,364.92 yen, down 26,66 yen 27 sen from the previous day. Buying subsequently weakened, particularly in AI-related and semiconductor stocks, while the yen briefly surged into the ¥155-per-dollar range on 3 August amid concerns about intervention to strengthen the yen and weaken the dollar.
The Nikkei 225 fell sharply on the Tokyo Stock Exchange on 28 July, closing at ¥62,364.92, down ¥2,566.27 from the previous day. Selling orders swelled, particularly for AI and semiconductor-related stocks, sending the index down more than ¥10,000 in about one month from its record closing high on 25 June.
On 31 July, the Nikkei 225 posted a sharp gain of more than ¥3,000 in response to gains in AI semiconductor stocks and strong earnings in the US market. On 3 August, however, the yen temporarily surged amid concerns about intervention by Japanese and US authorities to buy yen and sell dollars.
These factors have caused sharp market swings, with selling spreading mainly across export-related stocks and the Nikkei 225 retreating again. The rise in stock prices to date has been driven by expectations for expansionary fiscal policy, inflows of funds from overseas investors, and gains in AI, semiconductor and defense-related stocks.