Japanese Shares Rebound on Bargain Hunting

The Nikkei 225 Index fell 0.8% to below 62,000 on Wednesday, extending the previous session’s losses as technology stocks remained under heavy selling pressure amid persistent concerns over the sustainability of the artificial intelligence trade. Japanese equities also followed Wall Street lower after chipmakers led overnight declines in the US market. Among the biggest technology losers were Kioxia Holdings (-2.4%), Tokyo Electron (-5.5%), SoftBank Group (-4.7%), Murata Manufacturing (-9%), and Taiyo Yuden (-5.8%). Financial stocks also stayed under pressure, with Mitsubishi UFJ (-1.9%), Sumitomo Mitsui (-2%), and Mizuho Financial (-3%) posting notable losses. On the geopolitical front, the US military said it had successfully intercepted what it described as a surprise Iranian attack targeting US troops stationed across the Middle East, reigniting regional tensions and driving oil prices higher.

The Nikkei 225 Index climbed 0.6% to above 62,700, while the broader Topix Index added 0.3% to 3,975 on Wednesday, recovering part of the previous session’s losses as investors scooped up shares of select beaten-down technology stocks. Leading the gains among major tech names were Kioxia Holdings (7.3%), Advantest (6.4%), and Keyence (14.2%). Other strong performers included Toyota Motor (1.9%), JX Advanced Metals (4.3%), and Capcom Co (11.9%). However, another overnight selloff in US chipmakers continued to weigh on market sentiment, as investors remained concerned about the sustainability of heavy spending on artificial intelligence. On the geopolitical front, the US military said it had successfully intercepted what it described as a surprise Iranian attack targeting US troops stationed across the Middle East, reigniting regional tensions and pushing oil prices higher.

The Nikkei 225 Index dropped 2701 points or 4.16 percent on Tuesday to close at 62230 points. Losses were led by Sumco (-17.54%), Taiyo Yuden (-12.39%) and Resonac Holdings (-11.99%).