Stocks in Japan Hit 4-week Low

JP225 decreased to 64380.00 Index Points, the lowest since September 2026. Over the past 4 weeks, Japan Stock Market Index (JP225) gained 0.76%, and in the last 12 months, it increased 33.42%.

The Nikkei 225 Index fell more than 3% toward the 65,000 level on Thursday, extending its losing streak to six consecutive sessions and reaching a two-week low as stronger-than-expected US inflation fueled concerns over higher interest rates. Japanese equities also followed an overnight technology-led selloff on Wall Street, as rising borrowing costs threatened the sector’s credit outlook amid substantial investments in artificial intelligence. AI-related stocks led the declines in Japan, with Kioxia Holdings falling 9.1%, Advantest dropping 7.4%, Lasertec losing 8.8%, SoftBank Group sliding 7.8% and Taiyo Yuden declining 4.5%. Banking stocks also weakened, including Mitsubishi UFJ and Sumitomo Mitsui, both down 1.1%, while Mizuho Financial fell 1.8%. Meanwhile, Japanese data showed that core machinery orders, a key indicator of capital investment, increased more than expected in August.

Japan’s Nikkei 225 slipped 0.05% to close at 67,744 on Wednesday, surrendering earlier gains and extending its decline to a fifth consecutive session. Sentiment weakened after Dutch chip-equipment maker ASML said it would be unable to fully meet demand over the next two years, fueling concerns over the sustainability of the AI investment boom. Investors also remained cautious as rising oil prices and persistent supply disruptions in the Middle East heightened inflationary risks. Earlier in the session, equities drew some support from dovish remarks by New York Fed President John Williams, who said one additional rate hike may be appropriate this year but saw no need for further tightening in 2027. Technology and banking stocks led the declines, with Kioxia Holdings falling 3.2%, Lasertec dropping 1.6%, Tokyo Electron losing 2.7%, Mitsubishi UFJ declining 1.9%, and Mizuho Financial sliding 2.9%.