Japan's Indexes Struggled to Maintain Momentum Amid Weakness In Tech Stocks and Inflation Worries

Akira Ito
28 May, 2026
Tokyo

Japan's indexes scaled back on Wednesday from record highs set on Tuesday, as investors booked profit in technology stocks. 

The Nikkei 225 Stock Average decreased 1.3%, and the broader TOPIX fell 1.4%.

The pullback in AI-related and semiconductor equipment makers dragged down broader market sentiment, and uncertainty linked to the reopening of the Strait of Hormuz weighed. 

Investor sentiment deteriorated as investors digested comments from Bank of Japan Governor Kazuo Ueda. 

Earlier in the week, Governor Ueda warned about mounting inflationary pressures driven by higher energy prices and tighter supply conditions for energy products. 

However, the central bank chief stopped short of indicating if the policy committee is ready to raise rates at the next meeting. 

Benchmark indexes in Hong Kong, South Korea, and India dropped between 1% and 3%, and crude oil prices rebounded following the resumption of hostilities in the Middle East. 

The Brent crude oil price rose 3.6% to $97.63 a barrel as negotiators between the U.S. and Iran remained deadlocked over several key issues, including disruption of commercial shipment through the Strait of Hormuz.

In overnight trading in New York, broader benchmarks hovered near record highs, as investor sentiment remained positive and AI-linked stocks continued to scale new highs. 

Computer memory chipmakers, advanced semiconductor designers, and data networking equipment makers dominated gainers in trading. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1.3% to 64,133.42, and the broader TOPIX dropped 1.4% to 3,866.10. 

SoftBank Group decreased 5.3%, Tokyo Electron decreased 1.5%, Advantest Corp. fell 3.7%, and Lasertec Corp. plunged 5.4%.