Japan's Indexes Extended 3-Day Losses Tracking Global Weakness In AI Stocks

Akira Ito
24 Jun, 2026
Tokyo

Japan's benchmark indexes dropped for the second consecutive session amid growing concerns over heavy AI spending by hyperscalers. 

The Nikkei 225 Stock Average decreased 0.5%, the TOPIX dropped 0.4%, and the Japanese yen weakened to 161.65 against the U.S. dollar.

Major market indexes faced additional headwinds following significant losses in overnight trading in New York. 

Microsoft, Tesla, Alphabet, Meta Platforms, Apple, SanDisk, and Micron Technology declined between 2% and 13% amid lingering worries that the elevated level of spending for AI infrastructure is not sustainable. 

Market sentiment was further dented amid growing questions about Alphabet, SpaceX, and Oracle seeking funding from bond investors, exhausting their annual income, and lukewarm interest from equity investors. 

Moreover, Japan may have to seek alternative sources for rare-earth minerals, as shipments from China plunged to a one-year low in May. 

In the immediate future, Japanese companies are facing difficulties in getting licenses to import rare earth magnets, raising supply chain disruption worries. 

China's rare-earth magnet shipments to Japan totaled 123 metric tons, a sharp decline of 34.6% from April, according to a report by Japan's Yomiuri Shimbun quoting a Chinese customs agency. 

China imposed dual export controls on shipments of rare-earth minerals—including terbium, yttrium, and dysprosium—amid worsening diplomatic relations between Beijing and Tokyo. 

The persistent delay in Chinese export licenses is beginning to worry Japan's automakers, machine manufacturers, and electronics producers. 

The customs data showed that China halted all shipments of tungsten carbide for the fourth month in a row in May, a critical material used in metalworking, precision machinery, and automobile components.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.5% to 69,456.36, and the TOPIX dropped 0.4% to 3,973.21.

AI- and semiconductor-linked stocks led the decliners in Tokyo on Wednesday. 

Furukawa Electric, Fujikura, Sumitomo Electric, Disco Corp., and Tokyo Electron dropped between 2% and 4%.