TOKYO, May 28 (Reuters) - Japanese stocks slid on

Thursday as concerns about the Middle East crisis and valuations

in the technology sector weighed on sentiment.

The benchmark Nikkei 225 Index slipped 0.47% to

close at 64,693.12. In the previous session, the gauge shot up

as much as 2.2% to a record 66,428.81 before closing flat. The

broader Topix slid 0.41% to 3,902.01.

Overnight, healthcare and consumer stocks lifted the Dow

Jones Industrial Average to a record closing high, even as the

red-hot AI and chip sectors eased off recent gains.

Japanese tech shares were also broadly weaker on Thursday,

and declines accelerated after Iran and the United States traded

air strikes, risking chances of a lasting peace deal and sending

oil prices sharply higher again.

"Since the U.S. stock market was also weak, particularly in

the semiconductor sector, unless new factors emerge, the market

is likely to remain around the 65,000 mark," Wataru Akiyama, an

equities strategist at Nomura Securities, said about the

Nikkei's level.

"Given that the rally has been quite rapid, there is growing

caution about trading at these high levels, so we expect the

soft trend to continue."

So far in 2026, the Nikkei is up nearly 29%. There were 90

advancers on the index against 13 decliners on Thursday.

The largest percentage gainers were Taiyo Yuden ( TYOYF ), up

17%, followed by Murata Manufacturing ( MRAAF ), which jumped

9.2%.

The biggest losers were Furukawa Electric ( FUWAF ) and

Sumitomo Metal Mining ( STMNF ), with both down 7.3%.