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

Japan's Nikkei share gauge experienced a sharp decline on Wednesday, mirroring a significant sell-off in technology shares on Wall Street the previous evening. The benchmark Nikkei 225 index dropped by 2.97% to 65,459.71 in early trading, while the broader Topix index fell 2.72% to 4,027.56. Major US stock indexes closed lower as expectations for a Middle East peace deal faded, dampening risk appetite. Oil prices experienced an increase, while government bonds worldwide saw a decline, leading to a sharp rise in yields.

The Philadelphia Semiconductor Index, which tracks US technology shares, plummeted by 5%. "Rising long-term interest rates raised concerns that growth stocks were overvalued," stated Sony Financial Group analysts in a report. On the Nikkei 225 index, there were 46 advancers against 178 decliners, with 1 index remaining unchanged.

The most significant losers included chipmaker Kioxia Holdings, which plummeted 10.25%, followed by Furukawa Electric, down 10.10%, and Pan Pacific International, which decreased by 9.75%. SoftBank Group, a major investor in artificial intelligence, experienced a retreat of 6.47%. The greatest percentage gainers on the Nikkei index were Mercari, up 5.28%, followed by Shiseido, up 2.56%, and Otsuka Holdings, which increased by 1.91%.