The Nikkei 225 Index slipped 0.3% to below 68,100 on Wednesday, while the broader Topix Index lost 0.8% to 4,030, extending the previous session’s declines. Japanese shares mirrored an overnight selloff on Wall Street, driven by renewed weakness in semiconductor stocks. Sentiment toward the technology sector was further dampened by reports that China’s DeepSeek is developing its own AI chip.
Investors also reacted to rising geopolitical tensions in the Middle East and surging oil prices after the US launched new air strikes on Iran, following recent attacks on vessels transiting the Strait of Hormuz. Notable decliners among heavyweight stocks included Tokyo Electron (-2.7%), Taiyo Yuden (-3.0%), Fujikura (-1.4%), Ibiden Co (-3.3%), and Mitsubishi Heavy Industries (-3.4%).