Sell-off In Software Services Providers Dampened Broader Indexes In Japan

Akira Ito
04 Feb, 2026
Tokyo

Japan's stocks gyrated ahead of the lower house elections this weekend, and investors reviewed geopolitical tensions.  

The Nikkei 225 Stock Average decreased 1%, the broader Topix edged up 0.2%, and the yen weakened 0.3% to 156.34 against the U.S. dollar.

Investors sold tech stocks, reacting to a tech sell-off in overnight trading in New York amid growing concerns that Anthropic's newly released AI automation tool could hurt software services providers.

After this weekend's lower house election, many expect the ruling LDP party to increase its seat count. 

Prime Minister Sanae Takaichi's administration is likely to pursue expansionary fiscal policies, which could support higher stock prices but dent the yen. 

Crude oil prices advanced after the U.S. military said it shot down an Iranian drone approaching the U.S. aircraft carrier in the Middle East region. 

The U.S. is widely believed to be preparing for another round of air strikes targeting Iran's nuclear installations, and military analysts are anticipating attacks as early as this month.

Software firms in Japan and Asia dropped sharply amid worries that the AI tools could disrupt future growth and trim profit margins. 

TIS Inc. dropped 15% to ¥3,723.0, Trend Micro fell 7.2% to ¥5,661.0, and NS Solutions decreased 7.1% to ¥3,998.0. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1% to 54,186.15, and the broader Topix Index edged up 0.2% to 3,652.07. 

Semiconductor equipment makers and AI-related stocks decreased sharply amid worries about future growth. 

Tokyo Electron dropped 2% to ¥40,750.0, Advantest Corp. declined 3.2% to ¥25,190.0, and Lasertec fell 7.4% to ¥29,845.0.