High oil prices dampened market sentiment, and the Japanese stock market declined; on the eve of the release of US AI companies' earnings reports, investors tend to be cautious. At the close of Tokyo time, the TSE index fell 1.4% to 4009.21 points. The Nikkei 225 index fell 1.3% to 64075.42 points. Bank stocks such as Mitsubishi UFJ Financial Group continued to fall in the afternoon, becoming the main sector that dragged down the TSE Index. The results of the Japanese 20-year treasury bond tender are positive, and the market expects long-term treasury bond yields to have peaked. Chip-related stocks such as Renesas Holdings and Fujikura fell by more than 6%, ranking at the top of the Nikkei 225 component stock decline list on Tuesday. Kazuki Sawamura, an asset management strategist at Shinkin, said, “Investors are avoiding Japanese and South Korean stocks before the earnings season starts, and it is expected that the volatility of such assets will increase. The Nikkei Index has high exposure to the AI and semiconductor sectors, and the market is increasingly concerned about a sharp fluctuation in its stock price.”

High oil prices dampened market sentiment, and the Japanese stock market declined; on the eve of the release of US AI companies' earnings reports, investors tend to be cautious. At the close of Tokyo time, the TSE index fell 1.4% to 4009.21 points. The Nikkei 225 index fell 1.3% to 64075.42 points. Bank stocks such as Mitsubishi UFJ Financial Group continued to fall in the afternoon, becoming the main sector that dragged down the TSE Index. The results of the Japanese 20-year treasury bond tender are positive, and the market expects long-term treasury bond yields to have peaked. Chip-related stocks such as Renesas Holdings and Fujikura fell by more than 6%, ranking at the top of the Nikkei 225 component stock decline list on Tuesday. Kazuki Sawamura, an asset management strategist at Shinkin, said, “Investors are avoiding Japanese and South Korean stocks before the earnings season starts, and it is expected that the volatility of such assets will increase. The Nikkei Index has high exposure to the AI and semiconductor sectors, and the market is increasingly concerned about a sharp fluctuation in its stock price.”