Japanese stocks fall as Brent tops $100 and yen weakens

The Nikkei 225 dropped 2.73% to 64,611.15 as technology and AI-related shares slid on Middle East tensions, higher oil prices, a weaker yen and firmer inflation; South Korea’s KOSPI also fell sharply.

31d ago

Fact Check

All core claim elements are independently corroborated. The odaily source confirms the exact Nikkei figure (-2.73% to 64,611.15) and a sharp KOSPI fall; Trading Economics confirms the tech/AI-driven sell-off, Middle East tensions, and June inflation at 1.7%; the NYT headline and Trading Economics bond page confirm Brent crude topping $100; and CNBC plus Trading Economics confirm the weaker yen and firmer inflation. The convergence of multiple independent sources on the same date and figures makes the claim highly likely true.

Summary

Japanese stocks fell sharply on Friday, with the Nikkei 225 closing down 1,811.45 points, or 2.73%, at 64,611.15 as a broad technology-led selloff reversed the previous session’s gains. Investor sentiment was hit by concerns over AI-related spending, escalating tensions in the Middle East, Brent crude topping $100 a barrel, a weaker yen and Japan’s headline inflation accelerating to 1.7% in June from 1.5% in May, reinforcing expectations that the Bank of Japan could raise interest rates further. Technology and AI-related shares including Kioxia Holdings, Advantest, SoftBank Group, Tokyo Electron, Taiyo Yuden, Lasertec and Murata Manufacturing led declines. Elsewhere in Asia, South Korea’s KOSPI also dropped 5.73%, with SK Hynix and Samsung Electronics posting steep losses. Despite the pullback, the Nikkei remained up more than 1% for the week and on track for its first weekly advance in three.

Terms & Concepts

Nikkei 225 Index: A benchmark index tracking 225 major Japanese listed companies.
Bank of Japan: Japan's central bank, which sets monetary policy and interest rates.
headline inflation: The overall rate of consumer price increases before excluding specific categories.