The Nikkei 225 Index Closes 1.15% Lower

The Nikkei 225 Index fell 786 points or 1.15 percent on Wednesday to close at 67471 points. Leading the losses are Taiyo Yuden (-8.22%), Mitsui Mining & Smelting (-5.79%) and Taisei (-5.41%).

The Nikkei 225 Index dropped 2.11% to close at 66,819, while the broader Topix Index declined 1.37% to 4,006 on Wednesday, extending losses from the previous session as Japanese equities tracked an overnight selloff on Wall Street led by renewed weakness in semiconductor stocks. Reports that China's DeepSeek is developing its own AI chip also weighed on technology shares. Investors further reacted to escalating tensions in the Middle East and soaring oil prices after the US launched fresh air strikes on Iran following recent attacks on ships transiting the Strait of Hormuz. Chip and AI-related stocks led the decline, with sharp losses from Taiyo Yuden (-8.5%), Tokyo Electron (-3.1%), Advantest (-4.7%), Fujikura (-4.9%) and Ibiden Co (-4%). Heavyweight consumer and industrial stocks also slumped, including Fast Retailing (-0.9%), Toyota Motor (-1.9%) and Mitsubishi Heavy Industries (-4.7%).

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%.