The Nikkei 225 Index Closes 4.52% Lower

The Nikkei 225 Index decreased 643 points or 1.00 percent on Monday to close at 63719 points. The decline was led by Nippon Electric Glass (-17.55%), Fanuc (-15.39%) and Toto (-12.97%). On the upside, the strongest performers were Casio Computer (22.67%), Renesas Electron (10.26%) and Citizen Holdings (6.38%).

Asian equity markets mostly traded lower on Monday as semiconductor stocks came under renewed pressure amid persistent concerns about the sustainability of the artificial intelligence trade. Technology-heavy benchmark indexes in South Korea and Japan led regional declines, while Australian and Chinese equities also moved lower. Among individual stocks, South Korean chipmakers SK Hynix and Samsung Electronics both plunged more than 7%. Meanwhile, oil prices retreated after President Donald Trump said peace talks with Iran will resume today following his decision to cancel a planned attack on the Islamic Republic, offering some support to broader global equity markets.

The Nikkei 225 Index dropped 0.94% to close at 63,755, while the broader Topix Index declined 1.08% to 3,960on Monday, reversing the previous session's gains as the yen extended its rally after Japan confirmed it had conducted coordinated yen-buying operations with the US Treasury. The Finance Ministry also warned it stands ready to carry out additional coordinated interventions if necessary, adding that it remains in close contact with US authorities. A stronger yen clouds the earnings outlook for Japan's export-oriented industries and makes domestic equities less attractive to foreign investors. Heavy losses were recorded across financial, consumer, and technology stocks, with Sumitomo Mitsu (-2.9%), Toyota Motor (-3.4%), and Advantest (-3.3%) among the biggest decliners. In corporate news, Fanuc shares plunged more than 14% despite the factory automation company raising its full-year guidance on the back of robust sales and profit growth.