Tokyo Stock Market Close: Nikkei Average Falls Back; Selling on US Semiconductor Weakness, Supported by Dip Buying, Monday, October 19, 2026

In the Tokyo stock market on the 19th, the Nikkei Stock Average fell back, with the closing price at 64,916.70 yen, down 407.59 yen (0.62%) from the previous weekend. Following the trend of significant declines in AI and semiconductor stocks in the US market at the end of the previous week, selling took precedence, and the decline exceeded 1,400 yen in the morning. However, subsequently, amid thin trading, it reduced its losses in line with buybacks of stock index futures. While semiconductor-related stocks were sold, gains in trading company stocks and others were notable.

In the US stock market at the end of the previous week, US-based CoreWeave, which handles AI infrastructure, saw its stock price plunge again following a rise in corporate bond yields, and concerns surrounding AI investment were brought to the fore once again. The rise in crude oil futures prices due to supply anxieties regarding Middle Eastern crude oil also chilled investor sentiment, leading to significant declines in semiconductor and tech stocks.

Selling by investors who found it difficult to take on operational risk continued in the Tokyo market at the start of the week, with SoftBank Group (SBG) and other AI stocks leading the morning decline. The Nikkei Average even dipped below 64,000 yen during trading hours for the first time in about a month.

Although concerns surrounding AI investment remain deep-seated, credit concerns surrounding CoreWeave remain localized for now, and concerns about a global economic recession have not heightened. As overseas short-term investors, viewing the dip below 64,000 yen as a good opportunity, moved to buy back stock index futures, the Nikkei Average gradually reduced its losses. In addition to trading company stocks, Recruit and BayCurrent also performed steadily, and the market grew more resilient toward the afternoon session. Partly due to the trend of the Korea Composite Stock Price Index (KOSPI) strengthening after a morning decline, there were moments when it returned to the 65,000 yen level toward the end of trading.

The Tokyo Stock Price Index (TOPIX) rose slightly for the second consecutive day. The closing price was 4,067.48, up 1.48 points (0.04%) from the previous weekend. The JPX Prime 150 Index also rose slightly for the second consecutive day, ending at 1,710.18, up 0.10 points (0.01%).

The trading value on the Tokyo Stock Exchange Prime Market was approximately 6.7835 trillion yen, the lowest level in about a month. The trading volume was 2.06192 billion shares. On the Tokyo Stock Exchange Prime Market, 873 stocks fell, 621 rose, and 58 remained unchanged.

Fast Retailing, Tokyo Electron, Advantest, Ibiden fell. Meanwhile, KDDI, Kioxia, Toyota Tsusho, and Aeon rose.

[Nikkei QUICK News (NQN)]