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17.07.202606:51:16UTC+00Japanese Shares Tumble on Tech Rout

The Nikkei 225 Index tumbled 4.03% on Friday to close at 64,140, while the broader Topix Index dropped 2.72% to 3,919. Both benchmarks ended at their lowest levels in more than a month, as a global selloff in semiconductor stocks intensified amid growing concerns over aggressive AI-related capital spending and stretched valuations.

Sentiment was further dampened by the escalating tensions between the US and Iran, which pushed oil prices higher and reinforced worries about inflation and the interest rate outlook.

Technology and AI-related names led the declines in Japan, with Kioxia Holdings plunging 16.1%, Tokyo Electron sliding 8.1%, SoftBank Group losing 9%, Advantest shedding 7.2%, and Taiyo Yuden sinking 11.9%.

On a weekly basis, the Nikkei 225 fell 6.4%, while the Topix lost 2.9%.

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