Selling pressure on semiconductor-related stocks intensified in Japan against the backdrop of declines in US tech stocks, with the Nikkei 225 and TOPIX expected to remain soft. After a substantial decline in the morning session, buying and selling are expected to intersect in the afternoon.
The Nikkei 225 is expected to decline into the afternoon session following declines in US tech stocks. After the morning decline exceeded ¥1,000, the index showed some resistance to further falls, but selling pressure on semiconductor-related stocks remained a concern.
In the US market, concerns over funding for AI-related companies intensified, sending the Nasdaq sharply lower. In Japan, Advantest, SoftBank Group and Tokyo Electron were said to have weighed on the index.
The Nikkei 225 was at 64534.03, down 790.26 from the previous close, while the TOPIX was at 4050.34, down 15.66. Reports indicated that concentration in selected stocks had become apparent. Domestic resource-related stocks were also said to be relatively firm.
The response of Asian equity markets, foreign exchange and US stock-index futures is expected to be the focus of investment strategy in the afternoon session. Higher crude oil prices are also viewed as a potential burden on the stock market.