07.07.202601:10:18UTC+00Japanese Shares Struggle on Tech Weakness

The Nikkei 225 Index slipped 0.7% to below 69,300 on Tuesday, while the broader Topix Index advanced 0.4% to 4,120, reflecting mixed trading conditions as ongoing weakness in technology stocks continued to drag on the overall market. Regional sentiment was also dampened after shares of Samsung Electronics declined sharply, despite the company reporting strong profit growth driven by robust demand for AI data-center memory chips.

In Japan, investors weighed data showing that nominal wages rose 3.2% in May, even as household spending fell 0.4%, underscoring a divergence between income growth and consumer outlays. Technology names were among the notable losers, with Kioxia Holdings down 8.3%, Taiyo Yuden off 5.6%, Murata Manufacturing falling 4.3%, Lasertec dropping 6.4%, and Ibiden Co declining 4.7%.

By contrast, financial stocks outperformed, with Mitsubishi UFJ gaining 3.5%, Mizuho Financial rising 3.2%, and Sumitomo Mitsui adding 1.8%, helping to support the Topix despite the tech-sector weakness.