TOKYO: Japan’s Nikkei share gauge fell for a second day on Wednesday, as concerns over potential interest rate hikes by the Federal Reserve and AI sector valuations weighed on sentiment.
The benchmark Nikkei 225 slid 0.88 percent to close at 69,174.97, retreating further from a record high reached on Monday. The broader Topix slipped 0.67 percent to 3,963.76.
The decline followed overnight losses in US equities, where the Philadelphia Semiconductor Index sank 7.9 percent amid worries about debt-funded AI spending and tighter financial conditions.
“Speculation that the Federal Reserve is moving toward interest rate hikes has heightened concerns about rising financing costs for AI capital expenditures, which appears to have accelerated the decline in semiconductor stocks,” Sony Financial Group analysts said in a note.
There were 91 advancers on the Nikkei, 131 decliners, and three unchanged. Chip-related shares were among the laggards, with Tokyo Electron dropping 4.19 percent and Disco losing 3.78 percent.
Insurance stocks also fell sharply, led by T&D Holdings, which slid 5.74 percent. On the upside, retail shares were largely higher, with J. Front Retailing surging 3.99 percent.
Comments