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

TOKYO: Japan’s Nikkei share gauge slumped sharply on Wednesday, tracking a sharp sell-off in technology shares on Wall Street overnight.

The benchmark Nikkei 225 fell 2.97% to 65,459.71 in early trading.

The broader Topix slipped 2.72% to 4,027.56.

Major US share indexes closed lower as dimming expectations for a Middle East peace deal damped risk appetite.

Oil prices rose while government bonds around the world fell, driving yields sharply higher.

The Philadelphia SE Semiconductor Index tracking US tech shares, plunged 5%.

“Rising long-term interest rates heightened perceptions that growth stocks were overvalued, and declines in tech stocks, particularly in the semiconductor sector, drove the indices lower,” Sony Financial Group analysts said in a report.

There were 46 advancers on the Nikkei 225 against 178 decliners and 1 unchanged.

The biggest losers were chipmaker Kioxia Holdings, down 10.25%, followed by Furukawa Electric, down 10.10%, and Pan Pacific International, dropping 9.75%.

SoftBank Group, a major investor in AI, retreated 6.47%.

The largest percentage gainers on the Nikkei were Mercari , up 5.28%, followed by Shiseido, up 2.56%, and Otsuka Holdings, which gained 1.91%.