FX.co ★ Japanese Shares Fall on Tech-Led Selloff

The Nikkei 225 Index dropped 2% to around 69,000 on Thursday, ending a three-day winning streak as it followed a tech-led selloff on Wall Street. The pullback reflected persistent doubts about the durability of the recent rally driven by artificial intelligence–related shares.

Chipmakers and AI-linked stocks led the decline, with notable losses in Kioxia Holdings (-11.4%), Taiyo Yuden (-4.3%), Tokyo Electron (-6.2%), Advantest (-6.7%), and Fujikura (-6.6%). By contrast, financial and consumer names mostly advanced, including Mitsubishi UFJ (+1.9%), Mizuho Financial (+2.4%), and Toyota Motor (+3.6%).

Japanese equities also faced headwinds despite an uptick in oil shipments through the Strait of Hormuz and indications of progress in indirect talks between the US and Iran. At the same time, Federal Reserve Chair Kevin Warsh noted that inflation expectations had eased over the past month, suggesting there was no immediate pressure to raise interest rates.