The Nikkei 225 Index fell 0.92% to close at 70,035 on Wednesday, ending a two-session winning streak as investors took profits after the benchmark hit a three-month high. Japanese shares also lagged the latest record-setting rally on Wall Street.
Oil prices rebounded as ongoing risks to Middle Eastern energy supplies outweighed signs of recovering production in the region, keeping inflation worries in focus.
Technology and AI-related stocks bore the brunt of the selling, with notable declines in Kioxia Holdings (-4.5%), Advantest (-1.3%), Fujikura (-2.7%), Disco Corp (-6.3%) and Tokyo Electron (-2.4%). Financial stocks also weakened, including Mitsubishi UFJ (-1.3%), Sumitomo Mitsui (-1.7%) and Mizuho Financial (-2.4%).
In the background, sentiment toward the technology sector’s longer-term prospects found some support from reports that SpaceX is seeking to raise $40 billion to acquire Nvidia chips.
