Japan's Nikkei wobbles as AI stock selloff, rising bond yields weigh
TOKYO: Japan’s Nikkei share average edged lower on Tuesday in largely directionless trading as investors rotated out of heavyweight technology stocks into other sectors, while a sharp rise in bond yields weighed on overall risk sentiment. The tech-heavy Nikkei was down 0.2% at 66,173.86, as of 0200 GMT, although the benchmark flitted between losses and gains in early trade. The broader Topix rose…
Japan's Nikkei share average experienced a decline on Tuesday amid a tech stock selloff and rising bond yields, according to wire material. The tech-heavy index fell 0.2% to 66,173.86, oscillating between losses and gains during early trading hours. Meanwhile, the broader Topix index climbed 0.5% to 4,178.62.
The bond market saw renewed volatility, with both Japanese and US government bond yields hitting record highs. This surge was attributed to ongoing Middle East tensions fueling oil price increases and speculation of monetary tightening by the Bank of Japan and the Federal Reserve.
AI-related stocks bore the brunt of the selling pressure, with Tokyo Electron and Advantest leading the decline, falling by 3.4% and 1.6%, respectively. Cable manufacturers Furukawa Electric and Fujikura, major beneficiaries of the data center boom, saw their shares plunge by 4.9% and 3.9%, respectively. Silicon company Sumco also suffered a significant drop of 4.1%.
Analysts noted that the market was undergoing a brief sector rotation, with auto shares emerging as beneficiaries. Toyota and Nissan experienced a surge in their share prices, each up by 3.1%. The Nikkei's top gainers included Tokyo Electric Power Company, which rose by 5.1%. Out of the 225 components in the index, 168 experienced gains, while 54 fell, with three trading flat.
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