The Nikkei 225 continued to fall in the Tokyo market on 8 October, closing at ¥69,042.11, down ¥993.60 from the previous day. Profit-taking in AI and semiconductor-related stocks weighed on the overall market.
The Nikkei 225 continued to fall in the Tokyo stock market on 8 October, closing at ¥69,042.11, down ¥993.60, or 1.42%, from the previous day. It closed around the day's low, falling below a psychologically significant level. On the TSE Prime Market, declining stocks accounted for just under 80% of the total, while TOPIX closed at 4091.46, down 1.51%.
Profit-taking spread, led by AI and semiconductor-related stocks, against a backdrop of falling U.S. stocks and expectations of higher long-term interest rates. The previous day's rise in U.S. long-term interest rates and fiscal concerns in Europe exerted upward pressure on interest rates globally, with selling spreading to Japanese stocks as well. Uncertainty over the situation in the Middle East also dampened investor sentiment.
Among individual stocks, SoftBank Group and Tokyo Electron were pressured by profit-taking, while TDK, Murata Manufacturing and Fujikura also declined. Bank stocks were weak following the decline in long-term interest rates, while declines in construction equipment stocks Komatsu and Kubota also stood out. By contrast, software-related stocks including Recruit Holdings, Nomura Research Institute and Trend Micro attracted buying, and shipping stocks also rose.
TSMC, the contract semiconductor manufacturer, reported record-high sales of TWD 1.49 trillion, but the reaction from Japanese stocks was limited. Advantest also attracted buying at times after opening lower, but failed to lift the market overall. Tsuruha Holdings was firm after announcing its earnings. Market participants said they expect the Nikkei 225 to trade around ¥70,000 in the short term.