The Nikkei 225 Index Closes 1.36% Lower

The Nikkei 225 Index dropped 919 points or 1.36 percent on Friday to close at 66552 points. Losses were led by Sumco (-8.18%), Tokyo Electron (-6.80%) and Renesas Electron (-6.51%).

The Nikkei 225 Index fell 1.31% to close at 66,588 on Friday, extending the previous session’s losses as technology and artificial intelligence-related stocks continued to face selling pressure. Sentiment in the sector remained weak after a disappointing outlook from Broadcom reignited concerns about the AI trade. Investors also remained cautious amid the fragile ceasefire between the US and Iran and reports of stalled negotiations, despite President Donald Trump’s assurances that discussions are in their final stages. On the domestic front, data showed Japan’s real wages rose for a fourth consecutive month, strengthening expectations that the Bank of Japan could raise interest rates later this month. Technology stocks led the decline, with losses from Tokyo Electron (-6.6%), Murata Manufacturing (-2.1%), Taiyo Yuden (-1.5%), Fujikura (-1.2%) and Advantest (-5%). For the week, the Nikkei 225 Index still inched up 0.39% after rallying to fresh all-time highs earlier in the week.

The Nikkei 225 Index dropped 1.36% to close at 67,470, while the broader Topix Index fell 1.11% to 3,952 on Thursday, as Japanese equities pulled back from record highs amid a global selloff in technology and artificial intelligence stocks. Local markets tracked losses in US futures after a weak outlook from US chipmaker Broadcom dampened sentiment across the sector. Meanwhile, renewed tensions between the US and Iran reduced hopes for a peace agreement and pushed energy prices higher, keeping inflation and interest-rate concerns at the forefront. Among individual stocks, SoftBank Group tumbled 11.3% due to its significant exposure to AI-related investments. Other major decliners included Kioxia Holdings (-1.5%), Fujikura (-3.9%), Murata Manufacturing (-5%), Taiyo Yuden (-3.9%), and Furukawa Electric (-3.8%).