Japan's Nikkei 225 Plunged 3%, June's Factory Activities Expanded

Akira Ito
23 Jun, 2026
Tokyo

Japan's benchmark indexes dropped amid profit-taking in high-flying AI-related stocks. 

The Nikkei 225 Stock Average plunged more than 3%, the broader TOPIX decreased more than 2%, and the yen traded at 161.73 against the U.S. dollar. 

AI and semiconductor stocks plunged as investors booked profit, and the sector mirrored sharp losses in overnight trading in New York. 

In New York, the S&P 500 Index decreased 0.3%, and the tech-heavy Nasdaq Composite declined 1.3% driven by sharp losses in high-flying AI-linked stocks. 

Tech stocks came under pressure, and SpaceX plunged 16% after the company announced a $20 billion bond offering, and Alphabet Inc. dropped 5% after another leading AI researcher announced they would leave for a rival. 

On the domestic economic front, a private survey showed factory activities expanded for the sixth consecutive month in June, driven by a faster growth in output and new orders. 

The S&P Global Japan Manufacturing PMI increased to 54.9 in June from 54.5 in May, according to S&P Global. 

Sales advanced at the fastest pace since January 2022, largely driven by customers building inventories in anticipation of prolonged supply disruptions in the Middle East.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 3.2% to 70,012.72, and the broader TOPIX declined 2.2% to 4,003.01. 

SoftBank Group plunged 10%, Tokyo Electron decreased 5.1%, Advantest Corp. declined 1.8%, and Lasertec Corp. fell 9.6%. 

Nippon Yusen increased 1.1%, Mitsui OSK Lines edged up 0.7%, and Kawasaki Kisen Kaisha advanced 0.5%. 

Financial services providers traded down amid general market weakness and growing possibilities of another rate hike later in the year. 

Sumitomo Mitsui Financial eased 2%, Mizuho Financial fell 2.8%, and Mitsubishi UFJ Financial decreased 2.7%.