The Nikkei Average continued to decline after the 3-day weekend, temporarily falling more than ¥1,500. Reports said that the decline in AI semiconductor stocks in the US market and the prospect of higher oil prices amid concerns over the situation in the Middle East prompted selling.
The Nikkei Average opened lower after the 3-day weekend and extended its losses thereafter. Toward the end of the session, it was temporarily down sharply by more than ¥1,500. During the day, it temporarily fell to around the ¥67,000 level, its lowest intraday level in approximately 2 weeks.
Following the decline in stock indexes led by AI semiconductor issues in the US market, selling of semiconductor-related stocks spread to the Tokyo market, with leading issues including Tokyo Electron and Advantest coming under selling pressure.
Market participants said that tensions in the Middle East reported over the weekend and the resulting rise in crude oil futures prices led to selling.
As a result, overall market sentiment deteriorated and the Nikkei Average fell sharply.