Japan's Nikkei retreats from record high as AI rally sparks caution

Fujikura

27/05/2026 08:37

Updates with closing prices
By Junko Fujita
TOKYO, May 27 (Reuters) - Japan's Nikkei share average retreated from a record peak to end nearly flat on Wednesday, as investor caution grew about the fast-paced rally in AI-related stocks.
    The Nikkei .N225 closed at 64,999.41, after rising as much as 2.2% earlier in the session to hit a record intraday high of 66,428.81. The broader Topix .TOPX fell 0.52% to 3,918.01.
    Shares of chipmaking equipment maker Tokyo Electron 8035.T and chip-testing equipment maker Advantest 6857.T ended up 2.1% and 4.05%, respectively, making them the biggest contributors to the Nikkei.
    "Caution emerged for the high-pitched rally. The market sold AI-related shares that have gained in the latest sessions," said Shunichi Otsuka, general manager at the research and strategy department at Ichiyoshi Securities. 
    Uniqlo-brand owner Fast Retailing 9983.T rose 3.06%.
    SoftBank Group 9984.T slid 7.26%, weighing most on the Nikkei and marking the index's biggest percentage loss. The technology investor's shares are still up 7.62% so far this week, outpacing the Nikkei's 2.62% gain.
    Fibre-optic cable maker Fujikura 5803.T reversed early gains to end 3.55% lower. Its peer Furukawa Electric 5801.T fell 6.7%. 
    High-flying memory maker Kioxia 285A.T dropped 3.06%.  
    Banks and financials dragged the Topix lower. Sumitomo Mitsui Financial Group 8316.T lost 1.9%, while Mitsubishi UFJ Financial Group 8306.T and Mizuho Financial Group 8411.T slipped 0.98% and 1.93%, respectively.
The Topix's value share index .TOPXV fell 0.85%, while the growth share index .TOPXG slipped 0.15%. 
Of the nearly 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 45% rose, 50% fell, and 3% traded flat. 


 (Reporting by Junko Fujita; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
 ((junko.fujita@thomsonreuters.com;))