The Nikkei 225 fell 2.9% to around 65,500 on Wednesday and the broader Topix dropped 2.4% to 4,040, marking a second straight session of losses for Japanese equities as the selloff in semiconductor and other technology stocks intensified. Shares also followed Wall Street lower after heavy selling in AI-linked chipmakers overnight. Investor sentiment was further weakened by elevated global bond yields and rising oil prices, with Japan’s 10-year government bond yield reaching 30-year highs this week. Among the biggest decliners were Japanese companies tied to the global AI supply chain, including Kioxia Holdings, Furukawa Electric, Advantest, Tokyo Electron and Fujikura. Financial and consumer names also fell, with Mitsubishi UFJ and Toyota Motor both lower.