SynopsisJapan's Nikkei index saw mixed trading as investors awaited major US tech earnings. AI and chip-related stocks continued to face pressure, tracking global weakness. Geopolitical tensions in the Middle East also contributed to market uncertainty and rising oil prices. However, strong earnings from select companies like Keyence provided some support. Market breadth remained positive despite the Nikkei's subdued performance on Wednesday.ReutersArtificial intelligence-related shares continued to lead the decline on Wednesday. Japan's benchmark Nikkei index fluctuated between gains and losses on Wednesday as bargain hunting after the previous session's sharp decline was offset by investor caution ahead of key earnings from major U.S. technology companies and fresh geopolitical tensions in the Middle East, as per a Reuters report.The Nikkei was last trading 0.04% lower at 62,337.37 after swinging between positive and negative territory during the session. The broader Topix index, however, edged 0.33% higher to 3,976.55.The market remained under pressure after Tuesday's steep selloff, when the Nikkei tumbled more than 4% to its lowest level in two months, weighed down by heavy losses in semiconductor-related stocks, according to Reuters.AI-linked stocks remain under pressureArtificial intelligence-related shares continued to lead the decline on Wednesday. Murata Manufacturing plunged nearly 10%, while Tokyo Electron dropped 6.19%. Investment giant SoftBank Group also fell 5.75%, reflecting continued weakness across technology counters.Reuters reported that Japanese AI and chip-related stocks have been tracking the performance of global semiconductor shares, making them particularly vulnerable ahead of major earnings announcements.Global chip weakness weighs on sentimentInvestor sentiment was also dampened by weakness in overseas markets. South Korea's benchmark KOSPI declined after memory chipmaker SK Hynix posted strong quarterly earnings that nevertheless failed to meet elevated investor expectations.In the United States, the Philadelphia Semiconductor Index dropped nearly 4.5% overnight, adding to concerns over the global technology sector, Reuters said.Market participants are now focused on earnings from major U.S. technology companies, with Microsoft scheduled to report later on Wednesday and Amazon due to release results on Thursday.Back in Japan, chip-testing equipment maker Advantest, one of the Nikkei's heavyweight constituents, is set to announce its quarterly earnings after the market closes.Middle East tensions lift oil pricesGeopolitical developments also remained on investors' radar. Reuters reported that the U.S. military intercepted multiple ballistic missiles launched by Iran toward American forces stationed in the Middle East.The heightened tensions contributed to a sharp rise in crude oil prices, with oil climbing more than $2 per barrel in early trading after data showed shrinking U.S. crude inventories, according to Reuters.Strong earnings boost select stocksDespite the broader weakness, a few stocks posted strong gains following earnings announcements.Factory automation specialist Keyence surged as much as 15.42%, emerging as the biggest percentage gainer on the Nikkei after reporting robust quarterly results.Video game and entertainment company Konami advanced 8.81%, while cosmetics maker Shiseido gained 5.41%, providing support to the broader market.Market breadth remains positiveOverall market breadth remained positive despite the Nikkei's subdued performance, with 135 stocks advancing against 89 decliners.Meanwhile, shares of companies affected by Tuesday's magnitude 7.1 earthquake in Kumamoto, including retailer Aeon and Nippon Paper Industries, showed only limited market reaction.The powerful earthquake claimed at least 13 lives in southern Japan, with rescue teams continuing efforts to locate survivors trapped beneath collapsed buildings.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless