Japan's Nikkei hits three-month low as tech shares sink
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Nikkei 225 falls to lowest level since November
The Nikkei 225 closed down 1.4% at 38,237.79, marking its lowest closing level in three months, while the Topix index declined 0.4% to 2,724.7.
Key Drivers of the Decline
Tech Sector Weakness
Technology stocks led the sell-off, mirroring losses on Wall Street, where the Nasdaq dropped over 1% on concerns about AI-related tech demand and Nvidia’s earnings report.
Semiconductor Restrictions on China
Reports suggest that U.S. officials are considering new restrictions on Japanese and Dutch chipmakers, limiting their ability to service semiconductor equipment in China. Tokyo Electron (8035) dropped 4.9%, while Advantest (6857)—a key supplier to Nvidia—plunged 6.5%.
Yen Strength Weighs on Stocks
The yen touched its strongest level against the dollar since early December, pressuring Japan's exporters. The dollar has since firmed to 149.81 JPY/USD, offering some relief to stocks.
Notable Stock Movements
SoftBank Group (9984) down 4.3%;
Fast Retailing (9983) loses 3%;
Toyota Motor (7203) edges up 0.2%;
Warren Buffett's Berkshire Hathaway Expands in Japan
Shares of Japanese trading houses surged after Buffett confirmed he will increase his stakes in:
Itochu (8001);
Marubeni (8002);
Mitsubishi Corp (8058);
Mitsui (8031);
Sumitomo Corp (8053);
However, analysts remain skeptical that this move will significantly impact the broader market.
Market Outlook
Japan’s equity market remains under pressure from tech-sector volatility, U.S.-China trade tensions, and a stronger yen, but trading firms may benefit from renewed Buffett interest.
The Nikkei 225 closed down 1.4% at 38,237.79, marking its lowest closing level in three months, while the Topix index declined 0.4% to 2,724.7.
Key Drivers of the Decline
Tech Sector Weakness
Technology stocks led the sell-off, mirroring losses on Wall Street, where the Nasdaq dropped over 1% on concerns about AI-related tech demand and Nvidia’s earnings report.
Semiconductor Restrictions on China
Reports suggest that U.S. officials are considering new restrictions on Japanese and Dutch chipmakers, limiting their ability to service semiconductor equipment in China. Tokyo Electron (8035) dropped 4.9%, while Advantest (6857)—a key supplier to Nvidia—plunged 6.5%.
Yen Strength Weighs on Stocks
The yen touched its strongest level against the dollar since early December, pressuring Japan's exporters. The dollar has since firmed to 149.81 JPY/USD, offering some relief to stocks.
Notable Stock Movements
SoftBank Group (9984) down 4.3%;
Fast Retailing (9983) loses 3%;
Toyota Motor (7203) edges up 0.2%;
Warren Buffett's Berkshire Hathaway Expands in Japan
Shares of Japanese trading houses surged after Buffett confirmed he will increase his stakes in:
Itochu (8001);
Marubeni (8002);
Mitsubishi Corp (8058);
Mitsui (8031);
Sumitomo Corp (8053);
However, analysts remain skeptical that this move will significantly impact the broader market.
Market Outlook
Japan’s equity market remains under pressure from tech-sector volatility, U.S.-China trade tensions, and a stronger yen, but trading firms may benefit from renewed Buffett interest.