The Nikkei 225 Index dropped 2.9% to around 65,500 on Wednesday, while the broader Topix Index lost 2.4% to 4,040, marking a second straight session of declines for Japanese equities as the selloff in semiconductor and other technology shares intensified. Local stocks mirrored overnight weakness on Wall Street, where AI-related chipmakers came under heavy selling pressure.
Investor sentiment was further weighed down by elevated global bond yields and rising oil prices. In Japan, the 10-year government bond yield climbed to its highest level in 30 years this week, adding to concerns.
The sharpest losses were seen among Japanese firms deeply integrated into the global AI supply chain, including Kioxia Holdings (-10%), Furukawa Electric (-9.8%), Advantest (-4.4%), Tokyo Electron (-4.7%) and Fujikura (-8.4%). Financials and consumer-related names also declined, with Mitsubishi UFJ falling 4% and Toyota Motor shedding 2%.
