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Japan's Nikkei pulls back from record high on AI selloff
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Japan's Nikkei pulls back from record high on AI selloff
Jun 3, 2026 7:40 PM

TOKYO, June 4 (Reuters) - Japan's Nikkei share average

pulled back from a record high on Thursday, as investors sold

AI-related stocks after Broadcom ( AVGO ) missed expectations for

second-quarter revenue, while renewed fighting between the U.S.

and Iran also soured risk sentiment.

The Nikkei was down 1.83% at 67,149.15, as of 0143

GMT. The broader Topix slipped 1.28% to 3,944.95.

The Nikkei closed above the 68,000 level for the first time

on Wednesday as optimism for AI-related stocks outweighed

concerns over the Middle East. The index traded more than 8%

above the 25-day average in the previous session, a sign of

overheating.

Wall Street tumbled overnight, with the S&P 500

falling 0.7% and oil prices rising around 2% as hostilities in

the Middle East erupted anew and talks between Tehran and

Washington showed little progress.

On Thursday, technology investor SoftBank Group

tanked 10% and was the top drag for the Nikkei. It was also the

index's biggest percentage loser.

Data centre material makers fell, with Ibiden ( IBIDF ) and

Fujikura ( FKURF ) slipping 7.3% and 5.8%, respectively.

The sharp decline of Broadcom ( AVGO ) prompted the market

to sell chip-related shares, said Shuutarou Yasuda, a market

analyst at Tokai Tokyo Intelligence Laboratory.

Broadcom ( AVGO ) fell more than 13% in extended trading after the

chipmaker missed Wall Street expectations for second-quarter

revenue.

"But fundamentals for chip-related shares remain strong.

These shares, along with AI-related stocks, will continue to be

investors' target," Yasuda said.

Bucking the trend, chip-making equipment maker Tokyo

Electron ( TOELF ) rose 1.18%, tracking a 1.4% gain for the U.S.

semiconductor index overnight. The stock was the biggest

support for the Nikkei.

Chip designer Disco rose 4%.

The shipping sector climbed 1.48% to become the

top performer among the 33 industry sub-indexes on the Tokyo

Stock Exchange (TSE).

Of around 1,500 stocks trading on the TSE's prime market,

64% fell, 32% rose and 2% traded flat.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

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