The market remained range-bound ahead of the U.S.-Japan meetings, with the Nikkei moving sluggishly in the mid-¥63,000 range. AI-related stocks continued to weigh on the market, while trading activity remained subdued.
The Nikkei Stock Average remained range-bound in the mid-¥63,000 range, while the Tokyo Stock Price Index (TOPIX) also moved narrowly. Investors were seen taking a wait-and-see stance ahead of the U.S. and Japanese central banks’ monetary policy meetings. After the afternoon session began, the Nikkei fell sharply at one point, with AI-related stocks continuing to weigh on the market, while stocks outside the AI segment were relatively firm.
In afternoon-opening trading, the Nikkei Stock Average began at ¥63,561.43, down ¥449.91 from the previous day, while its morning-session close was ¥63,498.61, extending its decline. Selling was concentrated in AI-related stocks, while funds also appeared to rotate into non-AI stocks, and TOPIX rebounded as trading progressed. 20% of stocks declined and 77% advanced, with trading volume reaching 975.34 million shares and turnover totaling ¥3.9148 trillion.
As of 10:25 a.m., the Nikkei had at one point fallen by more than 1,200 points. SoftBank Group shares fell by more than 10% as investors reacted negatively to comments by OpenAI CEO Altman that the company would forgo an IPO this year. AI-related stocks accounted for many of the largest negative contributions, while some Standard and Growth stocks rebounded. With pressure from yen appreciation easing, market attention focused on the movement of short-term funds.
At the opening, concern spread that prioritizing AI safety measures would delay related investment, prompting early selling centered on related stocks. The market subsequently extended its losses, and market participants were watching the movement of short-term funds and the shift of funds into stocks outside the AI-related segment.