Japanese Shares Follow Wall Street Lower
The Nikkei 225 Index dropped 1.6% to around 61,900 on Friday, hitting its lowest levels in nearly three months and tracking a tech-led selloff on Wall Street overnight amid mounting concerns about the artificial intelligence trade. Semiconductor makers, memory chip producers and other AI-linked stocks suffered heavy losses, while investors shifted toward safer assets, including government bonds and the yen. Market sentiment was further dampened by rising tensions in the Middle East, following reports that the US and Israel had prepared plans for potential renewed strikes against Iran after next month’s midterm elections. Major technology stocks led the decline, with Kioxia falling 7.6%, Advantest dropping 4.2%, SoftBank Group losing 7.5%, Tokyo Electron sliding 6% and Fujikura retreating 6.8%. Financial and industrial shares also weakened, while consumer stocks proved more resilient. For the week, the Nikkei has declined by more than 5%.
The Nikkei 225 Index dropped 1.6% to around 61,900 on Friday, hitting its lowest levels in nearly three months and tracking a tech-led selloff on Wall Street overnight amid mounting concerns about the artificial intelligence trade. Semiconductor makers, memory chip producers and other AI-linked stocks suffered heavy losses, while investors shifted toward safer assets, including government bonds and the yen. Market sentiment was further dampened by rising tensions in the Middle East, following reports that the US and Israel had prepared plans for potential renewed strikes against Iran after next month’s midterm elections.
Major technology stocks led the decline, with Kioxia falling 7.6%, Advantest dropping 4.2%, SoftBank Group losing 7.5%, Tokyo Electron sliding 6% and Fujikura retreating 6.8%. Financial and industrial shares also weakened, while consumer stocks proved more resilient. For the week, the Nikkei has declined by more than 5%.