05.06.202600:50:18UTC+00Japanese Shares Extend Decline on Tech Weakness

The Nikkei 225 Index fell 1.5% to below 66,500 on Friday, extending the previous session’s losses as technology and artificial intelligence-related stocks remained under selling pressure. Sentiment in the sector stayed weak after Broadcom’s disappointing outlook rekindled concerns about the AI trade. Investors were also cautious amid a fragile ceasefire between the US and Iran and reports that negotiations have stalled, despite President Donald Trump’s assurances that talks are in their final stages.

On the domestic front, data showed that Japan’s real wages rose for a fourth consecutive month, reinforcing expectations that the Bank of Japan may raise interest rates later this month. Technology shares led the decline, with notable losses in Kioxia Holdings (-2.1%), SoftBank Group (-1%), Tokyo Electron (-5.6%), Murata Manufacturing (-2.2%) and Advantest (-4.4%).