The Nikkei Average was down more than ¥1,639 in the morning session, closing at ¥63,019.78, with the decline exceeding ¥1,900 at one point. Selling spread mainly across semiconductor stocks amid concern over the profitability of U.S. AI investment and the impact of U.S. technology earnings.
In the Tokyo stock market on the morning of the 30th, the Nikkei Average sharply reversed lower, with the morning close at ¥63,019.78, down ¥1,639.69 from the previous day. During trading hours, the decline exceeded ¥1,900 at one point, and the index temporarily fell below the ¥63,000 mark.
The decline was driven by a series of disclosures showing deteriorating free cash flow associated with AI investment in earnings reports from major U.S. technology companies. Alphabet's earnings showed that free cash flow had turned negative, reigniting concern over the profitability of AI investment.
Among individual stocks, Advantest, a semiconductor inspection equipment maker, Tokyo Electron and SoftBank Group all fell sharply, while Ibiden, which has Intel as a major customer, was sold down to its limit-down level. Selling also spread to bank stocks in tandem with declines in high-priced technology stocks.
Trading value on the TSE Prime Market during the morning session was approximately ¥2.3406 trillion, while trading volume was approximately 644.44 million shares, indicating heavier trading. Risk aversion has been strengthening across Asian markets, and the focus on AI-related stocks is expected to continue for the time being.