Japan's Nikkei share gauge fell for a second day on Wednesday, as concerns over potential interest rate hikes by the Federal Reserve and AI sector valuations weighed on sentiment.The benchmark Nikkei 225 slid 0.88% to close at 69,174.97, retreating further from a record high reached on Monday. The broader Topix slipped 0.67% to 3,963.76. The decline followed overnight losses in U.S. equities, where the Philadelphia Semiconductor Index sank 7.9% amid worries about debt-funded AI spending and tighter financial conditions."Speculation that the Federal Reserve is moving toward interest rate hikes has heightened concerns about rising financing costs for AI capital expenditures, which appears to have accelerated the decline in semiconductor stocks," Sony Financial Group analysts said in a note.There were 91 advancers on the Nikkei, 131 decliners, and three unchanged. Chip-related shares were among the laggards, with Tokyo Electron dropping 4.19% and Disco losing 3.78%.Insurance stocks also fell sharply, led by T&D Holdings , which slid 5.74%. On the upside, retail shares were largely higher, with J. Front Retailing surging 3.99%.
Japan's Nikkei falls on Fed rate-hike bets, tech valuation concerns
The Nikkei index in Japan fell for a consecutive second day amid worries about potential interest rate increases by the US Federal Reserve and uncertainties in AI sector valuations. The Nikkei 225 benchmark pulled back from its recent peak, reflecting declines in US stocks, notably in the semiconductor field. While chip and insurance sectors struggled, retail stocks managed to rise.
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