The Nikkei 225 Index Closes 3.02% Lower

The Nikkei 225 Index fell 2.8% to below 65,000, while the broader Topix Index declined 1.3% to 3,975 on Friday, extending losses from the previous session and following Wall Street lower after a sharp selloff in semiconductor stocks. The weakness came as investors increasingly questioned whether the elevated valuations of AI-related chipmakers remain justified by the industry's ambitious growth expectations. Market sentiment was also pressured by the escalating conflict between the US and Iran, which pushed oil prices higher and kept inflationary pressures and interest rate concerns in focus. Technology and AI-related stocks led the declines in Japan, with Kioxia Holdings plunging 15%, Tokyo Electron falling 4.5%, SoftBank Group losing 6.3%, Advantest dropping 5.9%, and Murata Manufacturing sliding 7.7%. The Nikkei 225 and Topix indexes are now on track to post weekly losses of nearly 6% and 2%, respectively.

The Nikkei 225 Index decreased 2074 points or 3.02 percent on Thursday to close at 66677 points. The decline was led by Sumco (-10.72%), Mitsui Kinzoku (-7.86%) and Fujikura (-7.11%).

The Nikkei 225 Index fell 2.79% to close at 66,835, while the broader Topix Index declined 1.45% to 4,029 on Thursday, snapping a two-day winning streak as semiconductor shares came under renewed selling pressure amid persistent concerns over the sustainability of the artificial intelligence trade. Investors also remained focused on escalating attacks in the Middle East, which have driven oil prices sharply higher this week and revived worries about inflation and the outlook for interest rates. Meanwhile, data showed US producer prices unexpectedly declined in June, lowering expectations of a near-term Federal Reserve rate hike. Among the biggest decliners were Japanese technology heavyweights, including Kioxia Holdings (-15), Tokyo Electron (-3.9%), SoftBank Group (-6.3%), Advantest (-5.3%), and Fujikura (-7.5%).