The Nikkei Average fell sharply during the mid-morning session on the 31st, at one point losing more than ¥1,573. Semiconductor-related shares intensified the broader market decline, with Advantest and Tokyo Electron among the steepest decliners.
The Nikkei Average had fallen ¥1,573.46 from the previous day to ¥64,832.10 as of 10:10 a.m., after also opening sharply lower. Expectations of higher interest rates in the United States rose following remarks by the Federal Reserve chair at the Jackson Hole meeting, putting pressure on markets amid mounting upward pressure on interest rates, including in Japan. The decline widened significantly throughout the morning session.
More than 60% of Prime Market stocks were lower, with semiconductor-related shares notably weak. Following a decline of more than 3% in the U.S. SOX Index at the end of the previous week, Advantest was down about 7% and Tokyo Electron about 4%.
Market participants said the decline in semiconductor stocks had also spread to Asian markets outside Tokyo, including South Korea.
The Nikkei Average had already started the session 737.05 yen lower at ¥65,668.51, continuing the trend following the decline in U.S. markets.