Japan's Nikkei share average dropped more than 1% on Tuesday, weighed down by declines in chip and AI-linked stocks ahead of key U.S. employment data. Investors adopted a wait-and-see approach amid upcoming economic releases.
Tokyo's stock market saw the Nikkei share average decline by 1.3% to 49,510.60, slipping below the key 50,000 level. The broader Topix index fell 1.2% to 3,391.23.
Robotics firm Yaskawa Electric (6506.T) plunged 6.1%, while data-center cable producer Fujikura (5803.T) dropped 5.6%, marking the steepest percentage losses in the Nikkei. Chipmaker Renesas (6723.T) lost 3.6%, and silicon processor Shin-Etsu Chemical (4063.T) sank 3.9%.
Some major tech shares showed modest recoveries after Monday's sharp falls. AI investor SoftBank Group (9984.T) ended down 1.1%, rebounding from an intraday low of 4.5% off, following a 6% drop the prior session. Nvidia supplier Advantest (6857.T) dipped just 0.3% after a 6.6% plunge on Monday.
"After yesterday's big declines, some of the big names are attracting dip buyers," said Maki Sawada, an equities strategist at Nomura Securities. However, "today's decline is broader," and with the U.S. nonfarm payrolls due Tuesday and the Bank of Japan decision Friday, "a wait-and-see posture is taking hold" in the market.
Of the Nikkei's 225 components, 187 fell while 38 rose. Among the Tokyo Stock Exchange's 33 industry groups, only airlines and agriculture sectors traded higher, reflecting caution ahead of the key data releases.
