Japan's Nikkei share average retreated from a record peak to end nearly flat on Wednesday, as investor caution grew about the fast-paced rally in AI-related stocks. The Nikkei closed at 64,999.41, after rising as much as 2.2% earlier in the session to hit a record intraday high of 66,428.81. The broader Topix fell 0.52% to 3,918.01. Shares of chipmaking equipment maker Tokyo Electron and chip-testing equipment maker Advantest ended up 2.1% and 4.05%, respectively, making them the biggest contributors to the Nikkei. "Caution emerged for the high-pitched rally. The market sold AI-related shares that have gained in the latest sessions," said Shunichi Otsuka, general manager at the research and strategy department at Ichiyoshi Securities. Uniqlo-brand owner Fast Retailing rose 3.06%. SoftBank Group slid 7.26%, weighing most on the Nikkei and marking the index's biggest percentage loss. The technology investor's shares are still up 7.62% so far this week, outpacing the Nikkei's 2.62% gain. Fibre-optic cable maker Fujikura reversed early gains to end 3.55% lower. Its peer Furukawa Electric fell 6.7%. High-flying memory maker Kioxia dropped 3.06%. Banks and financials dragged the Topix lower. Sumitomo Mitsui Financial Group lost 1.9%, while Mitsubishi UFJ Financial Group and Mizuho Financial Group slipped 0.98% and 1.93%, respectively. The Topix's value share index fell 0.85%, while the growth share index slipped 0.15%. Of the nearly 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 45% rose, 50% fell, and 3% traded flat.
Global Markets: Japan's Nikkei retreats from record high as AI rally sparks caution
Japan's Nikkei index pulled back from its record high on Wednesday. Investor caution emerged regarding the rapid rise in AI stocks. Tokyo Electron and Advantest saw gains, but SoftBank Group experienced a significant drop. Banks and financials also contributed to the broader Topix index's decline. Many stocks traded on the Tokyo Stock Exchange saw mixed results.














