Nikkei Falls After Briefly Topping 67,000 as Chip Rally Fades

Tokyo stocks slid on September 28, with the Nikkei 225 closing 486.58 points lower at 65,878, as an early rally above 67,000 gave way to profit-taking despite dividends and support for banks and insurers. The broader TOPIX fell 16.59 points to 4,112.00, indicating the weakness was not confined to the Nikkei's price-weighted structure.

The Growth Market 250 Index also declined 9.08 points to 791.47, as growth shares remained sensitive to rising yields and profit-taking. The Nikkei opened at 66,506, buoyed by a strong U.S. market lead, lower oil prices and softer U.S. long-term yields, but early enthusiasm faded after the index surpassed 600 points above its previous close.

Early gains in semiconductor and AI-related shares drove the index to 67,035, briefly reclaiming 67,000, but selling pressure in the semiconductor sector ultimately reversed the gains. The Nikkei slipped below 65,000 by the session's end, marking the end of a five-day winning streak and highlighting investors' reluctance to chase prices after a sharp rally last week.

The final trading day for many companies with September dividends and the September 30 record date created a dividend-related buying environment, yet it was insufficient to counter losses in high-priced tech shares and other recent winners. The session underscored the fragility of the Nikkei rally, with the 75-day moving average at the 66,000 level and semiconductor/ AI stocks as the primary drivers.