Nikkei slides on tech losses, BOJ rate hike concerns

The Nikkei 225 Index dropped 0.92% to close at 39,566 on Monday, reversing earlier gains as a selloff in major technology stocks weighed heavily on the market.

Nikkei slides on tech losses, BOJ rate hike concerns

Local equities faced additional pressure after the Bank of Japan (BOJ) raised interest rates and revised its inflation forecasts upward, hinting at further rate hikes in the future. However, BOJ Governor Kazuo Ueda provided little clarity on the timing or pace of these potential increases, leaving investors uncertain. The sentiment was further dampened by news that US President Donald Trump would impose tariffs and sanctions on Colombia following the country’s decision to block US migrant deportation flights.

Tech sector drops on trade, rate hike worries

The technology sector experienced notable losses, with Disco (-1.8%), Advantest (-8.6%), SoftBank Group (-8.3%), Tokyo Electron (-4.9%), and Lasertec (-1.5%) leading the declines, reflecting broader concerns over global trade tensions and rising interest rates.