Japan's Nikkei slides as Gulf tensions prompt shift to value shares

Tokyo Electron

10/06/2026 03:13

    TOKYO, June 10 (Reuters) - Japan's Nikkei share average retreated on Wednesday as renewed Middle East tensions prompted investors to rotate out of high-flying technology stocks sensitive to energy prices.
The benchmark Nikkei 225 Index .N225 was down 1.1% at 64,700.89, reversing course from a 2.1% surge in the prior session. The broader Topix .TOPX lost 0.69% to 3,869.34.
The United States launched strikes against Iran on Tuesday in retaliation for the downing of a military helicopter, deepening doubts over a potential peace deal.
Data showed on Wednesday that price pressures from the Gulf crisis caused Japanese wholesale inflation to quicken to the fastest pace in three years, adding upward pressure on domestic bond yields.
"Declines are centered on AI- and semiconductor-related shares, as heightened tensions in the Middle East and upward pressure on domestic interest rates prompted investors to focus more on relative valuations," said Wataru Akiyama, an equities strategist at Nomura Securities. "As a result, the Topix's decline is relatively limited compared with the Nikkei."
There were 96 advancers in the Nikkei index against 128 decliners. The largest losers were all tech-related stocks, including Sumco 3436.T, down 9%, followed by SoftBank Group 9984.T, 8.9% lower, and Sumitomo Electric 5802.T, which retreated 8.1%.
Nintendo 7974.T was a standout among decliners, dropping 7.8% after the video game giant's presentation of upcoming titles disappointed investors.



 (Reporting by Rocky Swift in Tokyo)
 ((rocky.swift@thomsonreuters.com;))