The Nikkei Average fell for a second consecutive session in morning trading, weighed down by concerns over a slowdown in the pace of AI development in the US and higher oil prices. After selling subsided, dip-buying emerged and the decline narrowed.
The Nikkei Average fell for a second consecutive session in the Tokyo stock market's morning trading, ending down 0.8% from the previous business day at ¥603,498.61. Concerns over a slowdown in the pace of AI development in the US and higher oil prices around the Strait of Hormuz weighed on the market, with the index falling more than 2% at one point.
The Nikkei Average fell as much as 2.01% early in the morning session, then narrowed its decline as selling subsided and dip-buying emerged. AI-related and semiconductor stocks were notably lower, while domestic-demand and software-related stocks were relatively firm.
Most stocks rose on the Prime Market, and the TOPIX traded modestly higher after rebounding. The TOPIX remained in positive territory throughout the morning session, while trading value on the Tokyo Stock Exchange Prime Market totaled ¥3,914.837 billion.
Market participants cited accelerated selling in related stocks following OpenAI's decision not to proceed with an IPO this year, and said that, with earnings announcements over, it was difficult to find a catalyst for a stock-price recovery. There was also a view that semiconductor-related stocks would remain capped on the upside until the next earnings season.