Japan's Nikkei slumps over 4% on tech selloff, Middle East conflict
EWJ•Decliners outnumber advancers as Seven & I gains
There were 83 advancers on the Nikkei 225 against 142 decliners. Tech and AI-related shares were the biggest laggards.
Kioxia was the index's biggest percentage loser, tumbling 16.05% for its steepest one-day decline since November 2025. Taiyo Yuden 6976.T was next, sliding 14.89%, followed by Sumco 3436.T, down 14.69%.
Seven & I Holdings 3382.T was among the top gainers, rising 4.38% after the company said it was in talks to buy a stake in Polish convenience store operator Zabka Group ZAB.WA.
Chipmakers lead losses after U.S. semiconductor weakness
The Philadelphia SE Semiconductor index .SOX tumbled 4.3% overnight, while the U.S.-listed shares of South Korean chipmaker SK Hynix SKYH.O plunged more than 13%.
With South Korea's market closed for a holiday, selling pressure intensified on Japan's tech market, and notably on chipmaker Kioxia Holdings 285A.T, said Daisuke Hashizume, a senior strategist at Daiwa Securities.
"The long-term trend for AI and data centres is unchanged, but right now investors are worried that memory chip prices can rise sustainably," Hashizume added.
Geopolitical tensions also remained elevated, with U.S. President Donald Trump threatening a broader escalation in strikes on Iran.
