The Nikkei 225 fell for a second straight session, closing down ¥841.28 at ¥64,075.42. AI-related and semiconductor stocks were sold, while the rebound in the US SOX Index had only a limited impact on the market.
Risk aversion intensified in the Tokyo market on the 20th, sending the Nikkei 225 sharply lower from the previous day. Selling in AI infrastructure-related stocks weighed on the market, and selling remained dominant in the afternoon session as the market continued to test lower levels.
US stocks saw the SOX Index rebound for the first time in nine sessions, but the reaction in the Japanese market was limited. Futures buying to cover positions temporarily narrowed the decline in the morning session, but cash buying failed to follow, and the downtrend continued.
By sector, AI and semiconductor-related stocks fell broadly. Among individual stocks, semiconductor manufacturing equipment-related stocks and other related names weakened, while electric wire and major bank stocks also came under selling pressure. Although some short-covering emerged after the market opened lower, selling regained the upper hand in the afternoon.
The proportion of declining stocks across the market remained high, and the Nikkei 225’s contribution breakdown was skewed to the downside. The sharp fall in the South Korean market also weighed on market sentiment.