JKB Financial Services Ltd.

As on : 04-Jun-2026

Market Commentary - Foreign Markets
04-Jun-2026 16:05

Japanese stocks retreat from record highs

Japanese equities fell sharply on Thursday, pulling back from recent record levels as global technology and AI stocks came under pressure. The Nikkei 225 Index dropped 1.36% to close at 67,470, while the Topix Index declined 1.11% to 3,952.

Local markets tracked weakness in US futures after chipmaker Broadcom issued a downbeat outlook, dampening sentiment across the tech sector. Renewed tensions between the US and Iran also weighed on investor confidence, pushing energy prices higher and keeping inflation and interest-rate concerns in focus.

Among individual stocks, SoftBank Group slumped 11.3% due to its heavy exposure to AI-related investments. Other notable decliners included Kioxia Holdings (-1.5%), Fujikura (-3.9%), Murata Manufacturing (-5%), Taiyo Yuden (-3.9%), and Furukawa Electric (-3.8%).

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