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Japans Nikkei sinks as tech shares track US peers lower

By Kevin Buckland TOKYO, - Japan's Nikkei share average dropped more than 1% on Monday as tech stocks tracked their Wall Street peers lower on lingering worries over stretched valuations. The Nikkei slid 1.2% to 50,220.15 by mid-morning, with artificial intelligence -focused startup investor SoftBank Group and chip-testing-tool maker Advantest - an Nvidia supplier - the biggest drags on the index by a wide margin. The broader, less tech-heavy Topix, by contrast, was down just 0.1% to 3,418.94.

Japans Nikkei sinks as tech shares track US peers lower

Credit: Livemint

Key Highlights

  • Of the Nikkei's 225 components, risers and fallers were evenly split at 110, with five shares trading flat.
  • "This is not broad-based weakness in stocks across sectors," said Nomura Securities strategist Fumika Shimizu.
  • "It feels like a sector rotation" away from the big tech shares that have performed so strongly this year, she said.
  • SoftBank Group tumbled 6.3% and Advantest slumped 5.8%, between them accounting for 533 points of the Nikkei's total 671-point slide.
  • Fujikura, another darling of the AI trade in Japan, dropped 3.7%.
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Sources

  1. Japans Nikkei sinks as tech shares track US peers lower

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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