The Nikkei 225 Index fell 0.4% to close at 39,376 on Tuesday, erasing earlier gains as semiconductor and tech stocks came under pressure, reflecting overnight losses in the U.S. markets.
Japan’s Nikkei declines on tech weakness
The downturn persisted despite reassurances from Japan’s Industry Minister Yoji Muto, who confirmed that the government would not increase taxes to fund a 10 trillion yen stimulus plan for AI chipmakers. This multi-year initiative aims to fortify Japan’s critical supply chains amid prolonged U.S.-China trade tensions.
Tech weighted on the index
Major tech losses included Disco (-2.1%), Advantest (-3.2%), Lasertec (-4.4%), Tokyo Electron (-2.8%), and Hitachi (-2.4%). SoftBank Group also declined modestly by 1.1%, despite strong quarterly earnings of 608.5 billion yen from its Vision Fund. On a positive note, Nissan Motor jumped 12.8% after activist investor Effissimo revealed a stake in the struggling automaker, sparking optimism for potential restructuring.
