Japanese Shares Fall on Tech-Led Selloff
2026-07-02 00:45
By
Jam Kaimo Samonte
1 min. read
The Nikkei 225 Index fell 2% to around 69,000 on Thursday, snapping a three-day winning streak as it tracked a tech-driven selloff on Wall Street overnight amid lingering concerns over the sustainability of the AI-fueled rally.
Chip- and AI-related stocks led the decline, with steep losses from Kioxia Holdings (-11.4%), Taiyo Yuden (-4.3%), Tokyo Electron (-6.2%), Advantest (-6.7%), and Fujikura (-6.6%).
In contrast, financial and consumer shares mostly advanced, including Mitsubishi UFJ (1.9%), Mizuho Financial (2.4%), and Toyota Motor (3.6%).
Japanese equities also came under pressure despite increased oil flows through the Strait of Hormuz and signs of progress in indirect US-Iran talks.
Meanwhile, Federal Reserve Chair Kevin Warsh said inflation expectations had eased over the past month, signaling there was no urgency to raise interest rates.