Semiconductor-related stocks weakened following the decline in US technology shares, and the Japanese market is expected to trade in negative territory during the afternoon session.
In the US market, concerns over financing by AI-related companies weighed on trading, sending the Nasdaq sharply lower. In response, concerns over selling pressure on semiconductor-related stocks have spread in the Japanese market.
The Nikkei average is expected to remain weak in the afternoon as semiconductor-related stocks are sold, with trading anticipated to continue in negative territory. Representative stocks include Advantest, SoftBank Group, and Tokyo Electron.
There is a view that US fund flows and supply-and-demand concerns surrounding semiconductor-related stocks will continue to affect the domestic market, heightening caution over individual share-price movements.