The Nikkei 225 Index Closes 2.03% Lower

The Nikkei 225 Index rose 0.4% to above 68,000 on Wednesday, ending a four-session losing streak as selling pressure in technology and AI-related stocks eased. Sentiment also improved following dovish comments from New York Fed President John Williams, who maintained that one additional rate hike would be appropriate this year but saw no need for further tightening in 2027. Lower US Treasury yields provided further support for Japanese equities, although elevated oil prices limited gains. Among the top technology performers, Advantest gained 1%, Kioxia Holdings rose 2.2%, Lasertec advanced 2.5%, SoftBank Group climbed 2.6%, and Taiyo Yuden surged 5.1%. Japanese technology stocks had faced mounting pressure in recent sessions amid concerns over AI-related investments and intensifying competition from China.

The Nikkei 225 Index fell 1.82% to close at 67,777 on Tuesday, extending its decline to a fourth consecutive session and following an overnight tech-led selloff on Wall Street. The downturn reflected growing concerns over the AI trade, as investors reassessed capital spending prospects amid rising borrowing costs. Market sentiment was further pressured by intensifying competition from China’s ChangXin Memory Technologies (CXMT), which reported progress in developing a new chip architecture. Broadcom CEO Hock Tan remarked that the AI boom had attracted investors whose strategies resembled gambling, while billionaire Ray Dalio described AI as a “classic bubble” nearing a potential burst as interest rates rise and investors seek to convert wealth into cash. Technology and AI-related stocks recorded substantial losses, with Kioxia Holdings plunging 13.3%, SoftBank Group dropping 8.5%, Tokyo Electron falling 7.2%, Taiyo Yuden declining 4.9% and Advantest losing 2.9%.

The Nikkei 225 Index decreased 1399 points or 2.03 percent on Tuesday to close at 67632 points. The decline was led by Sumco (-9.17%), Softbank (-8.13%) and Resonac Holdings (-7.34%).