Japanese Stocks Under Pressure, Tech Selloff Deepens
Japanese stocks closed sharply lower on Tuesday, pressured by a major selloff in the technology sector. The Nikkei 225 index fell 2.12 percent to 68,257, hitting a three-week low. Meanwhile, the broader Topix index weakened 0.97 percent to 4,062.
Regional sentiment worsened after shares of Samsung Electronics in South Korea plunged as much as 10 percent, despite the company reporting strong profit growth. The decline fueled investor concerns about the sustainability of the artificial intelligence-based trading euphoria.
In Japan, market participants also closely monitored the latest economic data. Nominal wages rose 3.2 percent in May, but household spending fell 0.4 percent. This combination suggests that pressure on domestic consumption remains a concern, despite growth in workers' incomes.
The greatest pressure was seen in major technology stocks. Kioxia Holdings plunged 11.3 percent, Taiyo Yuden fell 11 percent, Murata Manufacturing weakened 10.1 percent, Lasertec fell 6.4 percent, and Ibiden Co. fell 7 percent.
However, not all sectors moved negatively. Financial and consumer stocks still managed to post better performance. Mitsubishi UFJ rose 2.3 percent, while Fast Retailing gained 1.1 percent, helping to withstand further pressure on the Japanese market. (asd)*
Source: Newsmaker
