Artificial Intelligence▼impact 4
Nikkei Average Extends Losses in Morning Trade as Semiconductor Concerns Persist
The Nikkei average extended its losses in the morning session, falling 1.08% from the previous trading day to 61,689.86. After the previous day's sharp decline, bargain-hunting aimed at a self-sustaining rebound emerged in early trading, briefly lifting the index 1.24% to 63,138.04, but it later sank into negative territory, at one point dropping 1.86% to 61,201.98. South Korean semiconductor giant SK Hynix reported second-quarter operating profit of 60.5 trillion won, a record high, but it fell short of the 64 trillion won analyst consensus compiled by LSEG, and the Kospi index briefly tumbled more than 6%, weighing on investor sentiment. On the Tokyo Stock Exchange Prime Market, semiconductor-related stocks were heavily sold, with Screen Holdings plunging over 16% and Tokyo Electron falling more than 9%. Reiko Sera of Sumitomo Mitsui Trust Bank noted that AI and semiconductor-related shares had risen on high expectations, so even after SK Hynix's results, the rebound from the previous day's sharp drop remains limited.