Nikkei slumps sharply as tech sell-off spreads
SoftBank Group fell 6.47%
Japan's Nikkei share gauge experienced a significant slump on Wednesday, mirroring a sharp sell-off in technology shares on Wall Street. The benchmark Nikkei 225 index fell by 2.97 percent to 65,459.71 in early trading, while the broader Topix index declined 2.72 percent to 4,027.56. Major US share indexes also closed lower as diminished hopes for a Middle East peace deal dampened risk appetite.
Oil prices increased, causing government bonds worldwide to fall, leading to a sharp rise in yields. The Philadelphia Semiconductor Index, which tracks US tech shares, experienced a 5 percent plunge. Rising long-term interest rates raised concerns about the overvaluation of growth stocks, and declines in technology stocks, particularly within the semiconductor sector, contributed to the decline in indices.
Out of the 225 companies in the Nikkei 225 index, 46 rose while 178 declined, with 1 remaining unchanged. The most significant losers included chipmaker Kioxia Holdings, which dropped 10.25 percent, followed by Furukawa Electric, falling 10.10 percent, and Pan Pacific International, which decreased 9.75 percent. SoftBank Group, a major investor in artificial intelligence, saw a 6.47 percent decline, while the largest percentage gainers on the Nikkei index were Mercari, up 5.28 percent, Shiseido, up 2.56 percent, and Otsuka Holdings, which increased by 1.91 percent.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
