Global Tech Sell-Off Extended Weekly Losses In Tokyo

Akira Ito
18 Dec, 2025
Tokyo

Weakening market sentiment and rate-decision anxieties kept market indexes down in Tokyo for the fourth consecutive session. 

The Nikkei 225 Stock Average decreased 1.1%, the broader Topix declined 0.5%, and the yen held near the 155 level ahead of rate decisions. 

The Bank of Japan is widely anticipated to raise its benchmark rate by 25 basis points to 0.75%, and investors are awaiting the central bank's rate outlook for 2026. 

Japan's policymakers are struggling to contain the steep decline in yen while supporting the broader economic activities amid an uncertain outlook for exports. 

The European Central Bank and the Bank of England are expected to hold steady their benchmark rates amid weakening inflation and an anemic economic growth outlook. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average declined 1.1% to 48,971.47, and the broader Topix fell 0.5% to 3,353.78. 

In Tokyo, tech stocks led the broader market sell-off following losses in overnight trading in New York. 

The latest tech-driven sell-off was exacerbated by a report that Oracle's primary investor in its data center investments decided to pull out from a $10 billion project in Michigan. 

Oracle disputed the reports and said the center project is on track, and the news was first reported by the Financial Times.  

The jittery investors avoided additional exposure to high-flying tech stocks, dampening tech stocks across the globe.  

Softbank Group decreased 3.3% to ¥16,205.0, Tokyo Electron declined 3% to ¥30,370.0, and Advantest Corp. fell 3.6% to ¥18,750.0. 

Defense stocks remained in focus as Japan's lawmakers prepare to loosen restrictions surrounding the sale of arms and military technology to international buyers. 

IHI Corp. declined 2.6% to ¥2,739.0, Fujikura Ltd. decreased 3.5% to ¥15,950.0, and Kawasaki Heavy Industries dropped 4.6% to ¥10,990.0.