Japanese Shares Drop as Tech Selloff Intensifies

Japanese Shares Drop as Tech Selloff Intensifies

The Nikkei 225 Index fell 2.9% to around 65,500, while the broader Topix Index declined 2.4% to 4,040 on Wednesday, with Japanese shares sliding for a second consecutive session as the selloff in semiconductor and other technology stocks intensified.

Local equities also tracked losses on Wall Street overnight, where AI-linked chipmakers came under heavy selling pressure.

Meanwhile, elevated global bond yields and rising oil prices further dampened investor sentiment, with Japan’s 10-year bond yield climbing to 30-year highs this week.

Notable declines were recorded among Japanese companies heavily exposed to the global AI supply chain, including Kioxia Holdings (-10%), Furukawa Electric (-9.8%), Advantest (-4.4%), Tokyo Electron (-4.7%) and Fujikura (-8.4%).

Financial and consumer stocks also fell, with Mitsubishi UFJ losing 4% and Toyota Motor dropping 2%.