Japanese Shares Track Wall Street Lower
2026-02-04 00:36
By
Jam Kaimo Samonte
1 min. read
The Nikkei 225 Index dropped 1.2% to below 54,100 while the broader Topix Index lost 0.7% to 3,620 on Wednesday, paring gains from the previous session as markets tracked a tech-led selloff on Wall Street.
Investor sentiment was weighed by a rotation out of AI-related stocks amid rising concerns over heavy capital spending, with flows shifting toward more cyclical sectors.
A newly unveiled AI automation tool from Anthropic also pressured software shares, triggering broad declines in legal and data services companies.
Domestically, investors remained cautious ahead of this weekend’s snap lower house election, where the ruling LDP is expected to increase its seat count and advance expansionary fiscal policies under Prime Minister Sanae Takaichi.
Among individual stocks, Advantest fell 1.1%, Nintendo plunged 8.7%, Lasertec dropped 7.3%, Disco Corp slipped 1%, and SoftBank Group lost 3%.