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.



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Asian Stocks Fall on Tech-Led Selloff
Asian equity markets declined on Thursday, tracking a technology-led selloff on Wall Street overnight amid lingering concerns about the sustainability of the AI-driven rally. South Korea’s KOSPI Composite, widely viewed as a barometer for the AI sector, tumbled nearly 5%, while Japan’s Nikkei 225 lost more than 1%. Benchmark indexes in China and Australia also traded lower, while Hong Kong stocks rebounded after a holiday. Regional equities remained under pressure even after Federal Reserve Chair Kevin Warsh said inflation expectations had eased over the past month, signaling there was no urgency to raise interest rates. Meanwhile, increased oil flows through the Strait of Hormuz and signs of progress in indirect US-Iran talks helped ease pressure on Asia’s oil-importing economies.
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