Nikkei Falls Nearly 4% on Weak US Tech, BoJ Bets and Oil Jump

The Nikkei 225 fell nearly 4% to around ¥64,000 on June 8, retreating from its year-to-date highs in the ¥68,600s. The move followed softer-than-expected guidance from U.S. technology firms, a stronger-than-forecast first-quarter GDP reading in Japan and a jump in oil prices amid renewed U.S.-Iran tensions.

A pullback in global technology stocks contributed to the decline. Broadcom reported strong results but issued cautious guidance that weighed on the wider tech sector. Tokyo-listed technology names were among the biggest decliners: Kioxia Holdings slipped nearly 10%, SoftBank Group dropped about 8.6%, and Renesas Electronics, Furukawa Electric and IBIDEN also posted notable losses.

Japan’s preliminary GDP figures for the first quarter showed growth of 0.5% quarter-on-quarter, above the median market estimate of 0.3%, and 1.8% year-on-year versus an expected 1.3%. The report attributed the expansion to stronger external demand and a 0.3% rise in private consumption, while capital expenditure fell 0.7% as companies trimmed spending. Markets adjusted pricing for the Bank of Japan to reflect a higher probability of earlier rate increases.

Oil prices climbed on heightened tensions in the Gulf. Brent crude rose to about $96.26 a barrel, up roughly 3.4%, and West Texas Intermediate reached about $93.70, up around 3.6%. President Donald Trump commented in an interview that “talks were going on very well,” while U.S. officials reported little concrete progress. The U.S. has threatened to use seized Iranian assets to help fund reconstruction in Gulf states.

Technical indicators showed the Nikkei falling to a low near ¥63,800 after three down sessions from recent peaks in the high ¥68,600s. The index retested the lower boundary of its upward channel and remained above its 50-day exponential moving average.

Some investors also sold holdings to raise cash ahead of an anticipated SpaceX initial public offering, adding to selling pressure. The June 8 move reflected a combination of profit-taking after recent gains, changing rate expectations for Japan, weaker U.S. tech guidance and higher oil prices.