FX.co ★ Japanese Shares Fall as Tech Stocks Weigh

The Nikkei 225 Index declined by 0.7%, dropping below the 54,000 mark, while the broader Topix Index experienced a modest decrease of 0.1%, settling at 3,650 on Thursday. This downturn extended the previous session's losses as global tech sell-offs continued. Investor caution stemmed from concerns about high valuations, substantial investment in AI, and potential disruptions to traditional software business models. Notably, SoftBank Group saw a significant fall of over 6% after its chip design subsidiary, Arm Holdings, failed to meet fiscal third-quarter licensing sales forecasts. Several other technology companies followed suit, including Kioxia, which fell by 6.8%, Advantest by 4.7%, Fujikura by 4.1%, and Diso Corp by 4.5%. In contrast, Panasonic saw a remarkable surge of up to 15.2%, despite having revised down its full-year profit projections due to increasing restructuring costs. Additionally, Renesas Electronics climbed 5% after announcing its decision to sell its Timing business to SiTime for $3 billion.