The Nikkei Average briefly fell more than ¥1,500 in the Tokyo market's morning session on the 2nd, as selling spread to AI and semiconductor-related stocks against a backdrop of US and Middle East risks and rising US long-term interest rates.
The Nikkei Average opened sharply lower for a second straight session in the morning session on the 2nd and traded in the ¥64,800 range. Losses briefly exceeded ¥1,500, with selling spreading mainly to AI and semiconductor-related stocks, including Advantest, Tokyo Electron and SoftBank Group. TOPIX also fell back.
In the US stock market on the 1st, all major indexes declined. Reports said the US Central Command had begun air strikes targeting sites in Iran, sending crude oil futures sharply higher. US long-term yields reached 4.80%, and selling spread across equities amid concerns that financial markets were overvalued. The Philadelphia Semiconductor Index also fell more than 2%.
Among individual stocks, Fast Retailing, Ibiden and TDK declined, while Shionogi, Dentsu Group, Yamaha Motor and Secom rose. The previous day's closing level for the Nikkei Average was ¥66,215.34. After initially finding support in morning trading, the market fell again as higher crude oil prices and rising long-term yields weighed on sentiment.
Across the market, the number of advancing stocks rose to nearly 850. By sector, electricity and gas, mining, and oil and coal products gained, while services and retail declined. The market is expected to remain directionless, with attention still focused on US economic indicators and developments in the Middle East.