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

Business Recorder reported that Japan's Nikkei 225 dropped 2.97% to 65,459.71 in early trading on Wednesday, following a steep sell-off in technology stocks on Wall Street overnight. The broader Topix index also retreated, losing 2.72% to stand at 4,027.56.

US benchmark indexes closed lower as hopes for a Middle East peace agreement faded, reducing appetite for risk. Oil prices climbed while government bonds worldwide sold off, pushing yields sharply higher. The Philadelphia SE Semiconductor Index plunged 5%. Analysts at Sony Financial Group said in a report that rising long-term rates made growth stocks look overvalued, hitting tech shares, especially chipmakers.

Only 46 stocks on the Nikkei 225 advanced, against 178 decliners, with one unchanged. Chipmaker Kioxia Holdings was the worst performer, down 10.25%, followed by Furukawa Electric at 10.10% and Pan Pacific International, which fell 9.75%. SoftBank Group, a major AI investor, slid 6.47%, while Mercari led the gainers with a 5.28% rise.