The Nikkei 225 Index Closes 0.74% Lower

The Nikkei 225 Index decreased -501 points or 0.92 percent on Thursday to close at 53792 points. The decline was led by Daikin (-6.97%), Softbank (-6.94%) and Tosoh (-6.66%). On the upside, the strongest performers were Fukuoka Financial (10.37%), Panasonic (8.52%) and Shimizu Corporation (8.20%).

The Nikkei 225 Index fell 0.88% to close at 53,818, while the broader Topix Index slipped 0.09% to 3,652 on Thursday, extending losses from the previous session amid a global tech selloff. Investors pulled back from technology shares over concerns about elevated valuations, heavy AI spending, and the potential disruption to traditional software business models. SoftBank Group dropped 7% after chip designer subsidiary Arm Holdings missed fiscal third-quarter licensing sales forecasts. Other tech names followed suit, including Kioxia (-6.6%), Advantest (-4.8%), Fujikura (-5.1%), and Disco Corp (-4.4%). Meanwhile, Panasonic surged as much as 15.3% despite lowering its full-year profit estimates due to rising restructuring costs, and Renesas Electronics gained 7.5% after announcing plans to sell its Timing business to SiTime for $3 billion. Elsewhere, investors prepared for the lower house elections this weekend where the ruling LDP is expected to gain more seats.

The Nikkei 225 Index fell 0.7% to below 54,000 on Thursday, while the broader Topix Index lost 0.1% to 3,650, extending losses from the previous session as investors turned their attention to lower house elections scheduled for this weekend. Prime Minister Sanae Takaichi called the snap vote as she seeks voter backing for increased spending and other policy priorities. Investors are also looking ahead to Japan’s Q4 GDP report due next week, which is expected to rebound after a sharp contraction in the prior quarter. Among individual stocks, gains were led by index heavyweights including Lasertec (0.8%), Toyota Motor (1.7%), Shin-Etsu Chemical (0.7%), JX Advanced Metals (2.3%) and Hitachi (1.1%). In corporate news, Renesas Electronics jumped 7% after announcing plans to sell its Timing business to SiTime for $3 billion.