In the afternoon session on the 2nd, selling in semiconductor-related stocks weighed on the market, while buying in some major stocks provided support, and the Nikkei Average edged lower for a second straight session. There was also speculation that declines in US stocks and caution over AI-related stocks had an impact.
In afternoon trading on the 2nd, the Nikkei Average moved within a narrow range. Selling in semiconductor-related stocks weighed on the market, while buying in some major stocks provided support. After the morning session's movements, the decline narrowed after the afternoon opening, although the index at times fell back into negative territory.
Among individual stocks, Tokyo Electron was bought on the back of its favourable earnings outlook and supported the market, while Kioxia Holdings and SCREEN Holdings fell sharply. Some other stocks also rose, with semiconductor-related stocks showing divergent performance from one issue to another.
The dollar-yen pair was firm, with the dollar showing a tendency to recover. Without a decline in long-term US interest rates, the dollar's downward trend was viewed as likely to remain moderate. Attention will now turn to developments in the US market and the release of economic indicators.
In the afternoon session, the market was expected to continue trading with the 63,000-yen level in mind. Scheduled earnings announcements by Japanese companies and the release of indicators such as the US ISM manufacturing index were cited as factors that could influence the market.