Nikkei Falls 1.2%, Investors Worry About Middle East Escalation
Japanese stocks weakened on Wednesday (June 10th), after investor sentiment deteriorated due to escalating tensions in the Middle East. The Nikkei 225 index fell 1.2% to below 65,000, while the Topix index weakened 0.4% to 3,880.
This decline occurred after the United States launched an attack on Iran. Washington described the attack as an act of self-defense after a US military helicopter was shot down. This situation has renewed market concerns about geopolitical risks that could disrupt global market stability.
Pressure on Japanese stocks also came from Wall Street's weakness, particularly in the technology sector. Semiconductor stocks experienced selling pressure again, further weighing on technology stocks and artificial intelligence-related companies in Japan.
Domestically, economic data showed that Japanese wholesale inflation rose to 6.3% annually in May. This increase was the fastest pace in more than three years, mainly due to soaring energy costs. This situation has added to concerns that price pressures in Japan remain quite strong.
Technology and chip stocks were the main market bearish. Kioxia Holdings fell 3.6%, Taiyo Yuden weakened 3%, SoftBank Group plummeted 8.4%, Murata Manufacturing fell 4.2%, and Fujikura slumped 6.7%. However, Tokyo Electron moved in the opposite direction, surging 6.9% and setting a new record high. (asd)
Source: Newsmaker.id
