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Japan's Nikkei eases further from record high as AI euphoria fades
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Japan's Nikkei eases further from record high as AI euphoria fades
Jun 4, 2026 8:01 PM

TOKYO, June 5 (Reuters) - Japan's Nikkei share average

retreated on Friday for a second consecutive session after

closing at a record high earlier this week, as momentum slowed

in the red-hot technology sector.

The benchmark Nikkei 225 Index was down 1.58% at

66,406.17, but still poised for a slight gain on the week. The

broader Topix edged 0.01% higher to 3,952.44.

The Nikkei closed at an all-time peak of 68,402.13 on

Wednesday and has gained 34% so far this year.

The tech-heavy Nasdaq closed lower in the U.S. overnight

after chipmaker Broadcom ( AVGO ) missed revenue expectations,

dampening euphoria over AI investment.

On the other hand, data showing that real wages in Japan

rose 1.9% in April, gaining for a fourth consecutive month, lent

support to the broader market.

"While AI and semiconductor-related stocks are down today,

we're seeing gains across a broad range of other sectors and

stocks," said Wataru Akiyama, an equities strategist at Nomura

Securities. "Wage growth leads to increased consumption, which

in turn leads to improved corporate performance, and this is

thought to be contributing to the overall resilience of Japanese

equities."

There were 136 advancers in the Nikkei index against 88

decliners.

The biggest laggards in the index were technology industry

suppliers, with Sumco ( SUMCF ) down 10%, followed by Ibiden ( IBIDF )

, down 7.9%, and Renesas Electronics ( RNECF ), which

sank 7.5%.

The top gainers were Japan Steel Works ( JPSWF ), up 8.9%,

followed by Trend Micro ( TMICF ), which rose 7%, and T&D

Holdings ( TDHOF ), up 6%.

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