The Nikkei 225 fell 931 yen lower than the previous day's close on Thursday [1].
This decline follows a record-high rally, signaling a sharp reversal in investor sentiment as profit-taking takes hold of the Tokyo Stock Exchange. The volatility highlights the market's sensitivity to both corporate valuations in the tech sector and global geopolitical instability.
During the trading session, the index experienced a maximum intraday drop of more than 1,400 yen [1]. This plunge briefly pushed the index below the 67,000-point level [1].
Market analysts said expanded profit-taking sales targeted SoftBank Group and Kioxia Holding [2]. These two entities were central to the prior rally, and the subsequent sell-off triggered broader orders across the market. The impact was most pronounced among AI and semiconductor-related stocks, which have seen significant growth recently [2].
Beyond corporate selling, external pressures weighed on the index. Escalating tensions in the Middle East increased market anxiety, contributing to the overall downward trend [1].
Despite the drop, some participants believe the long-term outlook remains positive. A market participant said, "Once profit-taking selling spread, expectations for AI and semiconductor-related stocks remain strong," according to a report by TBS NEWS DIG [1].
“The Nikkei 225 fell 931 yen lower than the previous day's close”
The sharp correction in the Nikkei 225 suggests that while AI and semiconductor optimism continues to drive the market, the index is vulnerable to sudden volatility. The combination of profit-taking in heavyweights like SoftBank and Kioxia, coupled with geopolitical risks in the Middle East, indicates that investors are quick to lock in gains when global instability rises.
