The Nikkei 225 Index fell 1.2% to below 65,000 on Wednesday, while the broader Topix Index declined 0.4% to 3,880, erasing the previous session’s gains. Sentiment weakened after the US carried out “self-defense strikes” against Iran in response to the downing of an American helicopter. Japanese shares also mirrored a technology-led selloff on Wall Street, where semiconductor stocks again came under heavy pressure.
On the macro front, domestic data showed that Japan’s wholesale inflation accelerated to 6.3% year-on-year in May, the fastest pace in more than three years, largely driven by surging energy costs.
Chipmakers and AI-related names led the decline, with notable losses in Kioxia Holdings (-3.6%), Taiyo Yuden (-3%), SoftBank Group (-8.4%), Murata Manufacturing (-4.2%), and Fujikura (-6.7%). In contrast, Tokyo Electron jumped 6.9% to a fresh record high, bucking the broader market downturn.
