Tech Stocks Drag Down Nikkei
The Nikkei 225 index closed 0.93% lower at 65,683 in Thursday's trading (August 6). This decline erased some of the gains recorded in the previous session.
The primary downward pressure came from chipmakers and technology companies. Investors renewed concerns that the rally in artificial intelligence (AI)-related stocks had become overextended and vulnerable to a correction.
Several technology stocks saw sharp declines. Kioxia Holdings fell 10.2%, Taiyo Yuden dropped 11%, Murata Manufacturing slumped 5.2%, Ibiden fell 6.5%, and Tokyo Electron lost 5.5%.
SoftBank Group shares also fell 4.4% ahead of its earnings release. Investors are awaiting updates on the company's investments and business outlook regarding AI.
The Nikkei's decline occurred despite a drop in oil prices following an agreement between Iran and Oman on a temporary shipping route in the Strait of Hormuz. Lower oil prices helped ease inflation concerns, but this sentiment was insufficient to offset the pressure on technology stocks.
Meanwhile, Nintendo reported better-than-expected results. Game sales for the Switch 2 console and the recovery of import tariffs from the United States helped bolster the company's earnings. (asd)
Source: Newsmaker.id
