FX.co ★ Japanese Shares Fall as Tech Selloff Intensifies

The Nikkei 225 Index declined 0.8% to below 62,000 on Wednesday, extending the previous session’s losses as technology shares remained under heavy selling pressure amid persistent doubts about the sustainability of the artificial intelligence rally. Japanese equities also tracked Wall Street lower after US chipmakers led overnight declines.

Notable technology laggards included Kioxia Holdings (-2.4%), Tokyo Electron (-5.5%), SoftBank Group (-4.7%), Murata Manufacturing (-9%), and Taiyo Yuden (-5.8%). Financials were also under pressure, with Mitsubishi UFJ (-1.9%), Sumitomo Mitsui (-2%), and Mizuho Financial (-3%) recording marked losses.

On the geopolitical front, the US military reported that it had successfully intercepted what it called a surprise Iranian attack targeting US forces stationed across the Middle East, rekindling regional tensions and pushing oil prices higher.