The Nikkei 225 Index Closes 1.75% Lower

The Nikkei 225 Index dropped 2.12% to 68,257 on Tuesday, closing at a three-week low, while the broader Topix Index declined 0.97% to 4,062 as a sharp selloff in technology stocks weighed on the market. Regional sentiment also deteriorated after South Korea’s Samsung Electronics plunged as much as 10% despite reporting robust profit growth, fueling concerns about the sustainability of the artificial intelligence trade. In Japan, investors digested data showing nominal wages increased 3.2% in May, while household spending fell 0.4%. Heavy losses were recorded across major tech names, including Kioxia Holdings (-11.3%), Taiyo Yuden (-11%), Murata Manufacturing (-10.1%), Lasertec (-6.4%), and Ibiden Co (-7%). By contrast, financial and consumer shares outperformed, with Mitsubishi UFJ rising 2.3% and Fast Retailing gaining 1.1%.

The Nikkei 225 Index dropped 1218 points or 1.75 percent on Tuesday to close at 68520 points. Losses were led by Taiyo Yuden (-11.83%), Sumco (-11.41%) and Lasertec Corp (-7.42%).

Asian equity markets mostly fell on Tuesday as renewed selling in technology stocks overshadowed the tech-led rally on Wall Street overnight. Regional sentiment weakened after Samsung Electronics shares tumbled more than 5% despite reporting strong profit growth, driven by robust demand for AI data center memory chips. SK Hynix also dropped nearly 4% after launching the formal marketing process for its planned US listing. As a result, South Korea’s KOSPI Composite Index fell nearly 6%, while Japan’s Nikkei 225 Index lost more than 1%. Markets in Australia and mainland China also traded lower, while Hong Kong equities extended gains for a fourth consecutive session.