The Nikkei 225 Index Closes 2.09% Higher

The Nikkei 225 Index dropped 1.2% to below 65,000, while the broader Topix Index fell 0.4% to 3,880 on Wednesday, giving back the previous session’s gains as investor sentiment deteriorated after the US launched “self-defense strikes” against Iran in response to the downing of an American helicopter. Japanese equities also followed a technology-led selloff on Wall Street, where semiconductor stocks came under renewed pressure. Meanwhile, domestic data showed Japan’s wholesale inflation accelerated to 6.3% year-on-year in May, the fastest pace in more than three years, driven by surging energy costs. Chipmakers and AI-related companies led the market lower, with sharp declines from Kioxia Holdings (-3.6%), Taiyo Yuden (-3%), SoftBank Group (-8.4%), Murata Manufacturing (-4.2%), and Fujikura (-6.7%). Bucking the trend, Tokyo Electron surged 6.9% to a new record high.

The Nikkei 225 Index gained 1335 points or 2.09 percent on Tuesday to close at 65360 points. Gains were led by Taiyo Yuden (18.33%), Panasonic (9.49%) and Tokyo Electron (9.29%).

The Nikkei 225 Index climbed 2.17% to close at 65,416, while the broader Topix Index advanced 1.14% to 3,896 on Tuesday, as Japanese equities snapped a three-day losing streak amid a rebound in technology and artificial intelligence stocks. Domestic markets also took cues from Wall Street's overnight gains, with chipmakers recovering strongly after Friday’s selloff. Leading tech and AI performers included Kioxia Holdings (+6.4%), Tokyo Electron (+8.9%), Murata Manufacturing (+11.3%), Taiyo Yuden (+20%), and Advantest (+4.3%). Meanwhile, investors continued to expect the Bank of Japan to raise interest rates later this month as policymakers grapple with persistent inflation. On the geopolitical front, Iran and Israel agreed to halt attacks against each other, easing concerns that a broader conflict could intensify energy-driven inflationary pressures.