Market Update
Japan's Real Wages Advanced and Household Spending Eased In May
Akira Ito
07 Jul, 2026
Tokyo
Japan's indexes fell sharply as weakness in technology stocks weighed on the broader market for the second session in a row.
The Nikkei 225 stock average declined 1.8%, the broader TOPIX decreased 0.7%, and the yen hovered near 162 against the U.S. dollar.
Semiconductor equipment makers receded for the second consecutive week as investors questioned the durability of the AI infrastructure investment level.
On the economic front, Japan's nominal wages rose and household spending declined in May, according to the latest data released by two separate ministries.
Nominal wages per worker, including base and overtime pay, increased 3.2% to 311,165 yen, or $1,900, marking the growth above 3% for the fourth consecutive month, according to the Ministry of Health, Labor, and Welfare.
Of the nominal wages, scheduled pay increased 3.0% to 275,942 yen, and overtime pay advanced 2.9% to 20,003 yen, according to the latest report released by the ministry.
However, real wages rose 1.4%, decelerating from the upwardly revised 2.0% in April, largely fewer working days in the month because of Golden Week holidays from late April through early May.
Real wages rose for the fifth month in a row after falling for years through 2025; however, concerns over the higher food and fuel prices because of the conflict in the Middle East persist, complicating additional wage increases.
Households of two or more people spent an average of 320,345 yen, decreasing 0.4% after adjusting for inflation from a year ago, the Ministry of Internal Affairs and Communications said.
After a decade of unorthodox negative interest rates that ended in March 2024, the Bank of Japan is looking to normalize its monetary policy following the sustained wage growth and rising household consumption.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 1.8% to 68,465.72, and the broader TOPIX declined 0.7% to 4,074.05.
Semiconductor-related stocks dropped sharply in Tokyo's trading, as investors stayed on the sidelines.
Kioxia Holdings decreased 11.3%, Taiyo Yuden fell 11.1%, Murata Manufacturing fell 10.2%, and Ibiden Co. dropped 7%.
Japan's Real Wages Advanced and Household Spending Eased In May
Akira Ito
07 Jul, 2026
Tokyo
Japan's indexes fell sharply as weakness in technology stocks weighed on the broader market for the second session in a row.
The Nikkei 225 stock average declined 1.8%, the broader TOPIX decreased 0.7%, and the yen hovered near 162 against the U.S. dollar.
Semiconductor equipment makers receded for the second consecutive week as investors questioned the durability of the AI infrastructure investment level.
On the economic front, Japan's nominal wages rose and household spending declined in May, according to the latest data released by two separate ministries.
Nominal wages per worker, including base and overtime pay, increased 3.2% to 311,165 yen, or $1,900, marking the growth above 3% for the fourth consecutive month, according to the Ministry of Health, Labor, and Welfare.
Of the nominal wages, scheduled pay increased 3.0% to 275,942 yen, and overtime pay advanced 2.9% to 20,003 yen, according to the latest report released by the ministry.
However, real wages rose 1.4%, decelerating from the upwardly revised 2.0% in April, largely fewer working days in the month because of Golden Week holidays from late April through early May.
Real wages rose for the fifth month in a row after falling for years through 2025; however, concerns over the higher food and fuel prices because of the conflict in the Middle East persist, complicating additional wage increases.
Households of two or more people spent an average of 320,345 yen, decreasing 0.4% after adjusting for inflation from a year ago, the Ministry of Internal Affairs and Communications said.
After a decade of unorthodox negative interest rates that ended in March 2024, the Bank of Japan is looking to normalize its monetary policy following the sustained wage growth and rising household consumption.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 1.8% to 68,465.72, and the broader TOPIX declined 0.7% to 4,074.05.
Semiconductor-related stocks dropped sharply in Tokyo's trading, as investors stayed on the sidelines.
Kioxia Holdings decreased 11.3%, Taiyo Yuden fell 11.1%, Murata Manufacturing fell 10.2%, and Ibiden Co. dropped 7%.
China's Indexes Dropped to Multi-Month Lows as Tech Stocks Lose Momentum
Li Chen
07 Jul, 2026
Hong Kong
China's benchmark indexes turned lower for the second consecutive session as technology stocks continued to lose momentum.
The Hang Seng Index fell 0.4%, and the mainland-focused CSI 300 Index dropped 0.8% amid concerns that elevated valuations of AI- and semiconductor-related stocks may not reflect business fundamentals.
Technology stocks eased across Asia, and market indexes in Japan fell more than 1.3%, in South Korea dropped 6.6%, and in Taiwan eased 1%.
Sentiment towards the technology sector remained weak even after Samsung Electronics reported a 19-fold surge in profit in the second quarter.
Samsung Electronics dropped 8.8% amid growing worries that the AI boom could end abruptly, jeopardizing the company's plans to expand its memory and electronic product production capacities.
SK Hynix launched a roadshow for its proposed U.S. public listing on July 10, and the company is planning to raise as much as $29 billion.
China Indexes and Stocks
The Hang Seng Index decreased 0.4% to 23,518.81, and the mainland-focused CSI 300 Index declined 0.8% to 4,802.0.
Semiconductor-linked stocks traded down for the second session in a row.
Cambricon Technologies rose 2.6%, Hygon Information Technology increased 2.7%, SMIC dropped 4.2%, and NAURA declined 1%.
China's Indexes Dropped to Multi-Month Lows as Tech Stocks Lose Momentum
Li Chen
07 Jul, 2026
Hong Kong
China's benchmark indexes turned lower for the second consecutive session as technology stocks continued to lose momentum.
The Hang Seng Index fell 0.4%, and the mainland-focused CSI 300 Index dropped 0.8% amid concerns that elevated valuations of AI- and semiconductor-related stocks may not reflect business fundamentals.
Technology stocks eased across Asia, and market indexes in Japan fell more than 1.3%, in South Korea dropped 6.6%, and in Taiwan eased 1%.
Sentiment towards the technology sector remained weak even after Samsung Electronics reported a 19-fold surge in profit in the second quarter.
Samsung Electronics dropped 8.8% amid growing worries that the AI boom could end abruptly, jeopardizing the company's plans to expand its memory and electronic product production capacities.
SK Hynix launched a roadshow for its proposed U.S. public listing on July 10, and the company is planning to raise as much as $29 billion.
China Indexes and Stocks
The Hang Seng Index decreased 0.4% to 23,518.81, and the mainland-focused CSI 300 Index declined 0.8% to 4,802.0.
Semiconductor-linked stocks traded down for the second session in a row.
Cambricon Technologies rose 2.6%, Hygon Information Technology increased 2.7%, SMIC dropped 4.2%, and NAURA declined 1%.
U.S. Rally Broadens Beyond Tech Sector Amid Improving Global Sentiment
Barry Adams
06 Jul, 2026
New York City
Wall Street indexes retained an upward bias as investors returned from a three-day weekend.
The S&P 500 Index edged up 0.4%, and the tech-focused Nasdaq Composite advanced 1.1% amid the sustained advance in the tech sector.
Last week, global markets advanced between 2% and 5% as investors continued to prefer AI-related stocks but avoided last year's favorite hyperscalers.
Benchmark indexes are less than one percent down from record highs, and over the last month investors rotated into memory and electronic component makers from hyperscalers.
Alphabet, Meta, and Microsoft are down between 7% and 10% over the last six weeks as investors focus on the shifting of their business model from asset-lite to heavy capex-driven.
Investors are increasingly questioning the hyperscalers' use of debt, private credit, and other means of financing as Meta and Alphabet ramp up investments that surpass annual earnings.
Investors are paring exposure to chip stocks and rotating into industrials, healthcare, and financials.
Crude oil prices dropped to pre-war levels, and the persistent weakness in the yen pushed the currency to a four-decade low.
West Intermediate crude oil prices decreased 0.5% to $68.46 a barrel, and the international Brent crude oil price declined 0.4% to $71.75 a barrel.
The improving commercial shipments through the Strait of Hormuz increased crude oil supplies in the global market, easing tighter supply conditions.
Across the Atlantic, benchmark indexes in Germany decreased 0.1%, in France eased 0.06%, and in the UK dropped 0.3%.
U.S. Movers
Comcast Corporation edged up 0.4% to $23.80 after the company's UK-based Sky agreed to acquire the TV and entertainment business from its rival ITV.
Sky agreed to pay £1.6 billion, or $2.1 billion, including £1.2 billion in cash, and transfer control of Love Production as part of the transaction.
After the merger, Sky will reach about 20% of the U.K.'s viewers, only to be trailed by the BBC but ahead of YouTube, according to a statement released by the company.
U.S. Rally Broadens Beyond Tech Sector Amid Improving
Barry Adams
06 Jul, 2026
New York City
Wall Street indexes retained an upward bias as investors returned from a three-day weekend.
The S&P 500 Index edged up 0.4%, and the tech-focused Nasdaq Composite advanced 1.1% amid the sustained advance in the tech sector.
Last week, global markets advanced between 2% and 5% as investors continued to prefer AI-related stocks but avoided last year's favorite hyperscalers.
Benchmark indexes are less than one percent down from record highs, and over the last month investors rotated into memory and electronic component makers from hyperscalers.
Alphabet, Meta, and Microsoft are down between 7% and 10% over the last six weeks as investors focus on the shifting of their business model from asset-lite to heavy capex-driven.
Investors are increasingly questioning the hyperscalers' use of debt, private credit, and other means of financing as Meta and Alphabet ramp up investments that surpass annual earnings.
Investors are paring exposure to chip stocks and rotating into industrials, healthcare, and financials.
Crude oil prices dropped to pre-war levels, and the persistent weakness in the yen pushed the currency to a four-decade low.
West Intermediate crude oil prices decreased 0.5% to $68.46 a barrel, and the international Brent crude oil price declined 0.4% to $71.75 a barrel.
The improving commercial shipments through the Strait of Hormuz increased crude oil supplies in the global market, easing tighter supply conditions.
Across the Atlantic, benchmark indexes in Germany decreased 0.1%, in France eased 0.06%, and in the UK dropped 0.3%.
U.S. Movers
Comcast Corporation edged up 0.4% to $23.80 after the company's UK-based Sky agreed to acquire the TV and entertainment business from its rival ITV.
Sky agreed to pay £1.6 billion, or $2.1 billion, including £1.2 billion in cash, and transfer control of Love Production as part of the transaction.
After the merger, Sky will reach about 20% of the U.K.'s viewers, only to be trailed by the BBC but ahead of YouTube, according to a statement released by the company.
Japan's Indexes Extended Weekly Gains Despite Worsening Yen's Outlook
Akira Ito
03 Jul, 2026
Tokyo
Japan's indexes advanced in Friday's trading and extended weekly gains as investors reassessed the outlook for technology stocks and debated the appropriate level for the year.
The Nikkei 225 Stock Average increased 1.6%, the broader TOPIX gained more than 1%, and the yen rebounded more than 0.9% following persistent speculation that the authorities are ready to intervene.
The yen has lost about 5% against the U.S. dollar in the year so far and dropped more than 11% over the last year amid deepening concerns about Japan's fiscal outlook and a wide interest rate gap with other economies.
Currency traders are worried that market intervention is not likely to arrest the yen's steady decline over the next year, and many market participants are preparing for the currency to breach the 170 level against the U.S. dollar.
The yen's weakness boosts earnings of Japanese global corporations, and about 40% of the listed companies are active in foreign markets.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.6% to 69,601.30, and the broader TOPIX increased 1.1% to 4,059.28.
For the week, the Nikkei 225 advanced 1.6%, and the TOPIX gained 2.6% amid improving commercial shipments through the Strait of Hormuz and persistent weakness in the yen.
Semiconductor- and AI-related stocks rebounded despite growing worries that valuations are running ahead of the sector's fundamentals.
Kioxia Holdings jumped 9.2% to ¥83,300.0, SoftBank Group edged down 0.4% to ¥6,169.0, and Tokyo Electron gained 0.4% to ¥73,200.0.
Sumitomo Mitsui Financial added 1.5% to ¥6,672.0, Mitsubishi UFJ Financial increased 0.6% to ¥3,326.0, and Mizuho Financial closed up 1.3% to ¥8,078.0.
Japan's Indexes Extended Weekly Gains Despite Worsening Yen's Outlook
Akira Ito
03 Jul, 2026
Tokyo
Japan's indexes advanced in Friday's trading and extended weekly gains as investors reassessed the outlook for technology stocks and debated the appropriate level for the year.
The Nikkei 225 Stock Average increased 1.6%, the broader TOPIX gained more than 1%, and the yen rebounded more than 0.9% following persistent speculation that the authorities are ready to intervene.
The yen has lost about 5% against the U.S. dollar in the year so far and dropped more than 11% over the last year amid deepening concerns about Japan's fiscal outlook and a wide interest rate gap with other economies.
Currency traders are worried that market intervention is not likely to arrest the yen's steady decline over the next year, and many market participants are preparing for the currency to breach the 170 level against the U.S. dollar.
The yen's weakness boosts earnings of Japanese global corporations, and about 40% of the listed companies are active in foreign markets.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.6% to 69,601.30, and the broader TOPIX increased 1.1% to 4,059.28.
For the week, the Nikkei 225 advanced 1.6%, and the TOPIX gained 2.6% amid improving commercial shipments through the Strait of Hormuz and persistent weakness in the yen.
Semiconductor- and AI-related stocks rebounded despite growing worries that valuations are running ahead of the sector's fundamentals.
Kioxia Holdings jumped 9.2% to ¥83,300.0, SoftBank Group edged down 0.4% to ¥6,169.0, and Tokyo Electron gained 0.4% to ¥73,200.0.
Sumitomo Mitsui Financial added 1.5% to ¥6,672.0, Mitsubishi UFJ Financial increased 0.6% to ¥3,326.0, and Mizuho Financial closed up 1.3% to ¥8,078.0.
China's Indexes Extended Weekly Gains, BYD and Xiaomi June Deliveries Exceeded Expectations
Li Chen
03 Jul, 2026
Hong Kong
China's indexes advanced on Friday and extended weekly gains, but technology stocks remained a key drag on the sentiment.
The Hang Seng Index jumped 1.6%, and the mainland-focused CSI 300 Index increased more than 1% amid growing debate about valuations of the AI-related stocks.
Investors are increasingly questioning the elevated level of investment in AI infrastructure amid worries that returns on investment are likely to be far lower than expected and lag behind in time too.
Despite the growing use of artificial intelligence and the long-term growth potential of the technology, investors are worried that valuations may have outpaced fundamentals amid intensifying competition and escalating hardware and training costs for models.
On the economic front, service industry growth edged slightly lower in June, according to a private survey released by S&P Global.
The RatingDog China General Services PMI eased to 54.1 in June from 54.4 in May, supported by domestic demand.
Business sentiment remained positive for the third month in a row and matched the level in the previous month.
China Indexes and Stocks
The Hang Seng Index jumped 1.6% to 23,416.78, and the mainland-focused CSI 300 Index increased 1.1% to 4,867.59.
For the week, the Hang Seng Index gained 2.2% and the CSI Index edged up a fraction.
BYD gained 6% to HK $82.80, and the stock rebounded from a two-year low after vehicle sales in June surpassed expectations.
Unit sales increased annually by 5.5% to 403,472, marking the second consecutive month of growth.
Overseas demand drove the increase in monthly performance, and the company sold a record 175,349 vehicles, an increase of 94.7% from a year ago, accounting for 43.4% of total electric vehicle sales in the month.
However, domestic demand remained under pressure, and unit sales decreased 22% to 228,123 vehicles.
Xiaomi Corp. rose 1.5% to HK $22.94, and the company's automotive unit reported a sharp rise in unit sales in June.
Sales rose to above 30,000 units and extended second-quarter deliveries to 80,856 units in the quarter ending in June.
The company has an aggressive new product launch schedule, and the vehicle maker has targeted annual unit sales of 550,000, an increase of 34% from 410,000 units in 2025.
China's Indexes Extended Weekly Gains, BYD and Xiaomi June Deliveries Exceeded Expectations
Li Chen
03 Jul, 2026
Hong Kong
China's indexes advanced on Friday and extended weekly gains, but technology stocks remained a key drag on the sentiment.
The Hang Seng Index jumped 1.6%, and the mainland-focused CSI 300 Index increased more than 1% amid growing debate about valuations of the AI-related stocks.
Investors are increasingly questioning the elevated level of investment in AI infrastructure amid worries that returns on investment are likely to be far lower than expected and lag behind in time too.
Despite the growing use of artificial intelligence and the long-term growth potential of the technology, investors are worried that valuations may have outpaced fundamentals amid intensifying competition and escalating hardware and training costs for models.
On the economic front, service industry growth edged slightly lower in June, according to a private survey released by S&P Global.
The RatingDog China General Services PMI eased to 54.1 in June from 54.4 in May, supported by domestic demand.
Business sentiment remained positive for the third month in a row and matched the level in the previous month.
China Indexes and Stocks
The Hang Seng Index jumped 1.6% to 23,416.78, and the mainland-focused CSI 300 Index increased 1.1% to 4,867.59.
For the week, the Hang Seng Index gained 2.2% and the CSI Index edged up a fraction.
BYD gained 6% to HK $82.80, and the stock rebounded from a two-year low after vehicle sales in June surpassed expectations.
Unit sales increased annually by 5.5% to 403,472, marking the second consecutive month of growth.
Overseas demand drove the increase in monthly performance, and the company sold a record 175,349 vehicles, an increase of 94.7% from a year ago, accounting for 43.4% of total electric vehicle sales in the month.
However, domestic demand remained under pressure, and unit sales decreased 22% to 228,123 vehicles.
Xiaomi Corp. rose 1.5% to HK $22.94, and the company's automotive unit reported a sharp rise in unit sales in June.
Sales rose to above 30,000 units and extended second-quarter deliveries to 80,856 units in the quarter ending in June.
The company has an aggressive new product launch schedule, and the vehicle maker has targeted annual unit sales of 550,000, an increase of 34% from 410,000 units in 2025.
Wall Street Indexes Flatlined as U.S. Nonfarm Payrolls Growth Slows Sharply In June
Barry Adams
02 Jul, 2026
New York City
U.S. stocks edged slightly lower in early trading as investors remained focused on high-flying tech stocks.
The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite declined 0.3% as investors debated future rate paths, labor market conditions, and energy-shock-driven inflation outlooks.
Benchmark indexes are less than one percent down from record highs, and over the last month investors rotated into memory and electronic component makers from hyperscalers.
Alphabet, Meta, and Microsoft are down between 7% and 10% over the last six weeks as investors focus on the shifting of their business model from asset-lite to heavy capex-driven.
The surging price of memory is pushing the cost of building expensive data centers even higher, forcing even the most profitable companies to seek external financing.
Hyperscalers are looking to continue investing in expensive data centers at a breakneck speed, consuming all of their annual net income and raising additional capital through equity and debt offerings.
Crude oil prices extended recent losses, and the commodity is set to close down for the fourth week in a row, as investors
West Texas Intermediate crude oil futures for immediate-month delivery eased 1.8% to $67.45 a barrel, and international Brent crude decreased 1.4% to $70.44 a barrel.
On the economic front, the U.S. economy added 57,000 net new jobs in June, the weakest increase in four months, according to the U.S. Bureau of Labor Statistics.
The change in total nonfarm payrolls for April was revised down by 31,000 to 148,000 and for May by 43,000 to 129,000.
The jobless rate changed little at 4.2%, and the number of unemployed people changed little at 7.1 million in the month.
The annual wage growth for all employees accelerated slightly to 3.5%, to $37.64.
U.S. Movers
Alphabet decreased 0.9% to $355.60, and the parent company of search engine Google lost its appeal against a record €4.1 billion fine over the competition rules in Europe.
The European Court of Justice rejected Google's appeal against the European Commission's record penalty, accusing the company of abusing its dominant position in smartphone devices to give an unfair advantage to its own apps with pre-installation deals.
Kioxia Holdings dropped 13.5% to ¥76,260.0 after the Japanese semiconductor maker postponed its U.S. public offering amid volatile market conditions.
Kioxia, one of the world's largest flash memory and solid-state drive makers, was spun off from Toshiba in 2018 and operates in nine countries and regions.
Kioxia reported consolidated revenue in fiscal 2026 ending in March of 2.4 trillion yen, or $14.5 billion, an annual increase of 37% driven by the artificial intelligence boom and strong demand for enterprise storage systems.
Wall Street Indexes Flatlined Ahead of June Nonfarm Payrolls Report
Barry Adams
02 Jul, 2026
New York City
U.S. stocks edged slightly lower in early trading as investors remained focused on high-flying tech stocks.
The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite declined 0.3% as investors debated future rate paths, labor market conditions, and energy-shock-driven inflation outlooks.
Benchmark indexes are less than one percent down from record highs, and over the last month investors rotated into memory and electronic component makers from hyperscalers.
Alphabet, Meta, and Microsoft are down between 7% and 10% over the last six weeks as investors focus on the shifting of their business model from asset-lite to heavy capex-driven.
The surging price of memory is pushing the cost of building expensive data centers even higher, forcing even the most profitable companies to seek external financing.
Hyperscalers are looking to continue investing in expensive data centers at a breakneck speed, consuming all of their annual net income and raising additional capital through equity and debt offerings.
Crude oil prices extended recent losses, and the commodity is set to close down for the fourth week in a row, as investors
West Texas Intermediate crude oil futures for immediate-month delivery eased 1.8% to $67.45 a barrel, and international Brent crude decreased 1.4% to $70.44 a barrel.
U.S. Movers
Alphabet decreased 0.9% to $355.60, and the parent company of search engine Google lost its appeal against a record €4.1 billion fine over the competition rules in Europe.
The European Court of Justice rejected Google's appeal against the European Commission's record penalty, accusing the company of abusing its dominant position in smartphone devices to give an unfair advantage to its own apps with pre-installation deals.
Kioxia Holdings dropped 13.5% to ¥76,260.0 after the Japanese semiconductor maker postponed its U.S. public offering amid volatile market conditions.
Kioxia, one of the world's largest flash memory and solid-state drive makers, was spun off from Toshiba in 2018 and operates in nine countries and regions.
Kioxia reported consolidated revenue in fiscal 2026 ending in March of 2.4 trillion yen, or $14.5 billion, an annual increase of 37% driven by the artificial intelligence boom and strong demand for enterprise storage systems.
Japan's Indexes Dropped 2%, Yen Sank to New Four-Decade Low
Akira Ito
02 Jul, 2026
Tokyo
Japan's indexes traded down and halted a three-day rally, tracking losses in tech stocks in overnight trading in New York.
The Nikkei 225 stock average decreased 2.5%, the TOPIX declined 0.1%, and the yen traded at 162.56 against the U.S. dollar.
Investors continued to debate the appropriate level for the yen, as regulators showed little urgency in shoring up the faltering currency.
The yen sank to a new 39-year low against the U.S. dollar, despite the growing consensus over at least two rate hikes before the year's end.
Japanese corporations are parking their overseas earnings in foreign accounts amid a lack of domestic investment opportunity and weak economic growth conditions.
In stock trading, chip- and AI-related stocks led decliners in Tokyo, as investors reassessed the sustainability of investment in AI infrastructure.
Hyperscalers—Meta, Alphabet, and Microsoft—are scaling back their plans for AI-driven data centers amid rising costs, a longer-than-expected payback horizon, and growing community resistance.
Japan, South Korea, and Taiwan are key beneficiaries of the global datacenter boom, and semiconductor equipment makers and electric and electronic component makers are experiencing higher sales and earnings because of the rising U.S. demand.
Investors are increasingly questioning the hyperscalers' use of debt, private credit, and other means of financing as Meta and Alphabet ramp up investments that surpass annual earnings.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 2.5% to 68,733.15, and the broader TOPIX declined 0.1% to 4,014.98.
Kioxia Holdings dropped 14%, Tokyo Electron decreased 7.3%, Advantest Corp. declined 10.1%, Taiyo Yuden Corp. eased 9.9%, and Fujikura Ltd. fell 7.9%.
Japan's Indexes Dropped 2%, Yen Sank to New Four-Decade Low
Akira Ito
02 Jul, 2026
Tokyo
Japan's indexes traded down and halted a three-day rally, tracking losses in tech stocks in overnight trading in New York.
The Nikkei 225 stock average decreased 2.5%, the TOPIX declined 0.1%, and the yen traded at 162.56 against the U.S. dollar.
Investors continued to debate the appropriate level for the yen, as regulators showed little urgency in shoring up the faltering currency.
The yen sank to a new 39-year low against the U.S. dollar, despite the growing consensus over at least two rate hikes before the year's end.
Japanese corporations are parking their overseas earnings in foreign accounts amid a lack of domestic investment opportunity and weak economic growth conditions.
In stock trading, chip- and AI-related stocks led decliners in Tokyo, as investors reassessed the sustainability of investment in AI infrastructure.
Hyperscalers—Meta, Alphabet, and Microsoft—are scaling back their plans for AI-driven data centers amid rising costs, a longer-than-expected payback horizon, and growing community resistance.
Japan, South Korea, and Taiwan are key beneficiaries of the global datacenter boom, and semiconductor equipment makers and electric and electronic component makers are experiencing higher sales and earnings because of the rising U.S. demand.
Investors are increasingly questioning the hyperscalers' use of debt, private credit, and other means of financing as Meta and Alphabet ramp up investments that surpass annual earnings.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 2.5% to 68,733.15, and the broader TOPIX declined 0.1% to 4,014.98.
Kioxia Holdings dropped 14%, Tokyo Electron decreased 7.3%, Advantest Corp. declined 10.1%, Taiyo Yuden Corp. eased 9.9%, and Fujikura Ltd. fell 7.9%.
China Indexes Closed Down Tracking Global Losses In Tech Stocks
Li Chen
02 Jul, 2026
Hong Kong
China's benchmark indexes halted a 3-day rally, driven by a sell-off in technology stocks.
The Hang Seng Index increased 1.3%, and the CSI 300 Index fell nearly 2% following sharp losses in semiconductor stocks.
The technology rally halted following another down day in overnight trading in New York.
Investors reassessed the sustainability of the recent AI-driven rally amid worries that valuations have risen so much and that elevated levels are not sustainable.
The latest batch of mixed economic releases also contributed to investors' caution amid persistent weakness in domestic demand growth and lingering weakness in the residential market.
China Indexes and Stocks
The Hang Seng Index increased 1.3% to 23,180.64, and the mainland-focused CSI 300 Index dropped 1.9% to 4,867.43.
Zhongji Innolight decreased 4%, Eoptolink Technology dropped 5.2%, and Hygon Information Technology declined 6%.