The Nikkei 225 Index Closes 2.24% Lower

The Nikkei 225 Index fell 2.9% to around 65,500, while the broader Topix Index declined 2.4% to 4,040 on Wednesday, with Japanese shares sliding for a second consecutive session as the selloff in semiconductor and other technology stocks intensified. Local equities also tracked losses on Wall Street overnight, where AI-linked chipmakers came under heavy selling pressure. Meanwhile, elevated global bond yields and rising oil prices further dampened investor sentiment, with Japan’s 10-year bond yield climbing to 30-year highs this week. Notable declines were recorded among Japanese companies heavily exposed to the global AI supply chain, including Kioxia Holdings (-10%), Furukawa Electric (-9.8%), Advantest (-4.4%), Tokyo Electron (-4.7%) and Fujikura (-8.4%). Financial and consumer stocks also fell, with Mitsubishi UFJ losing 4% and Toyota Motor dropping 2%.

The Nikkei 225 Index dropped 1548 points or 2.24 percent on Tuesday to close at 67672 points. Losses were led by Taiyo Yuden (-12.19%), Murata Manufacturing (-9.17%) and Citizen Holdings (-6.68%).

The Nikkei 225 Index dropped 2.54% to close at 67,461 on Tuesday, reversing the previous session’s gains as global bond yields surged amid persistent concerns over inflation and massive government spending. Japan’s benchmark 10-year government bond yield climbed to around 2.95%, its highest level in three decades on mounting fiscal concerns, as well as growing expectations of an imminent Bank of Japan interest rate hike. The Takaichi administration’s plan to cut the consumption tax on food to 1% for two years has fueled market concerns, as the government has yet to identify an alternative revenue source. Notable declines came from technology and consumer stocks, including Kioxia (-7.6%), Taiyo Yuden (-11.5%), Murata (-9.6%), Fast Retailing (-2.3%) and Sony Group (-1.6%). In corporate news, Situational Awareness sold shares in Japan’s Taiyo Yuden Co. to Citadel and other investors when it offloaded part of its stake this month, representing a significant reduction in its position.