Japan's Nikkei slumps sharply as tech sell-off spreads

Japan's Nikkei share gauge experienced a significant decline on Wednesday, mirroring a substantial sell-off in technology shares on Wall Street the previous evening. The benchmark Nikkei 225 experienced a drop of 2.97%, settling at 65,459.71 in early trading. The broader Topix index also decreased by 2.72%, reaching 4,027.56. Major US stock indexes closed lower as expectations for a Middle East peace deal faded, dampening risk appetite.

Oil prices surged, while government bonds worldwide saw declines, pushing yields sharply higher. The Philadelphia Semiconductor Index, which tracks US tech shares, plummeted by 5%. This decline was fueled by rising long-term interest rates, which raised concerns that growth stocks were overvalued. In a report, Sony Financial Group analysts attributed the Nikkei's decline to the steep drop in tech stocks, particularly in the semiconductor sector.

The Nikkei 225 saw 46 advancers against 178 decliners and 1 unchanged. The most significant losers were chipmaker Kioxia Holdings, down 10.25%, Furukawa Electric, down 10.10%, and Pan Pacific International, dropping 9.75%. SoftBank Group, a major technology investor, declined by 6.47%. Among the few gainers, Mercari rose by 5.28%, Shiseido increased by 2.56%, and Otsuka Holdings gained 1.91%.