The Nikkei 225 Index fell 0.7% on Wednesday to slip below the 65,500 level, erasing the previous session’s gains as technology and artificial intelligence-related shares came under renewed pressure. This weakness persisted despite a rebound in US technology stocks overnight, supported by a pullback in long-term US Treasury yields from recent highs and softer oil prices that helped ease inflation concerns.
Investors also stayed cautious ahead of chipmaker Nvidia’s earnings report later in the global trading day, seeking fresh signals on the durability of AI-related demand. Among notable decliners in Japan’s tech sector were Kioxia Holdings (-1.5%), Fujikura (-1.6%), Advantest (-1.7%), Taiyo Yuden (-3%) and Tokyo Electron (-1.9%).
In contrast, financial shares outperformed, with gains led by Mitsubishi UFJ (0.9%), Sumitomo Mitsui (1.1%) and Mizuho Financial (0.8%).
