Japan's Nikkei retreats from record high as AI rally sparks caution
Visitors walk inside Japan Exchange Group's Tokyo Stock Exchange in Tokyo, Japan, April 6, 2026. REUTERS/Issei Kato
TOKYO, May 27 : 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 per cent earlier in the session to hit a record intraday high of 66,428.81. The broader Topix fell 0.52 per cent to 3,918.01.
Shares of chipmaking equipment maker Tokyo Electron and chip-testing equipment maker Advantest ended up 2.1 per cent and 4.05 per cent, 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 per cent.
SoftBank Group slid 7.26 per cent, weighing most on the Nikkei and marking the index's biggest percentage loss. The technology investor's shares are still up 7.62 per cent so far this week, outpacing the Nikkei's 2.62 per cent gain.
Fibre-optic cable maker Fujikura reversed early gains to end 3.55 per cent lower. Its peer Furukawa Electric fell 6.7 per cent.
High-flying memory maker Kioxia dropped 3.06 per cent.
Banks and financials dragged the Topix lower. Sumitomo Mitsui Financial Group lost 1.9 per cent, while Mitsubishi UFJ Financial Group and Mizuho Financial Group slipped 0.98 per cent and 1.93 per cent, respectively.
The Topix's value share index fell 0.85 per cent, while the growth share index slipped 0.15 per cent.
Of the nearly 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 45 per cent rose, 50 per cent fell, and 3 per cent traded flat.
