Japanese stocks fell amid concerns over AI-related stocks and rising oil prices. SoftBank Group shares fell sharply at one point, while the Nikkei Average dropped more than ¥1,100.
Japanese stocks fell as investors focused on a correction in US AI-related shares. SoftBank Group's share price fell as much as 12%. Selling in AI-related stocks weighed on the broader market, while buying in financials, trading companies, gaming and defense-related stocks provided some evidence of underlying market resilience.
In the Tokyo market, the Nikkei Average fell more than ¥1,100 at one point, and caution across the market increased as crude oil moved above $100. With the yen maintaining a narrow trading range, foreign exchange and interest-rate trends were the focus of market attention ahead of policy meetings in Japan and the US.
In the bond market, caution over the 20-year Japanese government bond auction was in focus, while expectations were reported that Bank of Japan rate-hike prospects and higher oil prices would affect the market's risk assessment. Market participants are assessing a situation in which AI concerns, higher oil prices and rising interest rates are moving simultaneously.