The Nikkei 225 Index Closes 4.69% Lower

The Nikkei 225 Index decreased 3123 points or 4.69 percent on Monday to close at 63465 points. The decline was led by Sumco (-13.88%), Tokuyama (-10.90%) and Minebea (-9.87%).

Asian equity markets moved sharply lower on Monday, led by South Korea’s benchmark KOSPI Index, which plunged as much as 8.8%, as investors reacted to a tech-driven selloff on Wall Street that heavily impacted semiconductor and artificial intelligence-related stocks. Stronger-than-expected US jobs data further weighed on sentiment by reinforcing expectations that the Federal Reserve will raise interest rates later this year, pushing Treasury yields higher and reducing the appeal of equities. Meanwhile, geopolitical tensions intensified after Iran launched several rounds of missiles toward Israel as a warning against further military actions in Lebanon, raising concerns over the stability of a fragile ceasefire as peace talks remain stalled. Other major regional markets also came under pressure, with shares in Australia, Japan, China, and Hong Kong posting significant declines.

The Nikkei 225 Index fell 3.85% to close at 64,024, while the broader Topix Index declined 2.45% to 3,852 on Monday, marking a third consecutive session of losses for Japanese equities. The downturn mirrored Friday’s sharp selloff on Wall Street, where semiconductor and other technology stocks came under significant pressure. Stronger-than-expected US jobs data also reinforced expectations that the Federal Reserve will raise interest rates this year, driving Treasury yields higher and adding to pressure on equity markets. Meanwhile, geopolitical concerns intensified after Iran launched several rounds of missiles toward Israel as a warning against further military actions in Lebanon, casting doubt on a fragile ceasefire as peace negotiations remain stalled. Japanese chipmakers and other tech firms led the declines, including Kioxia Holdings (-8%), Murata Manufacturing (-10.2%), SoftBank Group (-6.1%), Advantest (-5.7%) and Tokyo Electron (-7.5%).