The Nikkei 225 fell by more than ¥1,500 at one point on the morning of the 31st, dropping below ¥65,000. Selling of AI and semiconductor stocks amid stronger expectations for rate hikes in the US market also spread to the domestic market.
In the Tokyo market on the morning of the 31st, the Nikkei 225 fell sharply, at one point declining by more than ¥1,500 from the previous day and dropping below ¥65,000. It was reported that the decline widened at times after trading began.
In the US market, reports on the 28th indicated that Federal Reserve Chair Warsh had suggested the possibility of a rate hike, prompting selling in AI and semiconductor stocks. This move was said to have spread to the Tokyo market the following day.
Selling of AI and semiconductor stocks was also pronounced in the Tokyo market and was cited as a factor weighing on the Nikkei 225. Views have been expressed that concerns over US interest-rate trends prompted investors to avoid risk.
The decline on the morning of the 31st was explained in connection with developments in the US market, with analysis citing movements in AI and semiconductor stocks as having affected the Nikkei 225. The extent of the spillover and its future development are attracting the attention of market participants.
Some market observers expect attention to focus again in future trading on the outlook for US interest-rate trends and developments in AI- and semiconductor-related stocks.