Tokyo Stocks Plunge on U.S. Tech Rout

Tokyo, June 8 (Jiji Press)–Tokyo stocks plummeted Monday, led by heavy selling of artificial intelligence-related issues following declines in U.S. technology shares late last week, with the key Nikkei 225 stock average briefly losing over 3,100 points. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section ended Monday’s session at 64,024.60, down 2,563.52 points, or 3.84 pct, from Friday. On Friday, major U.S. stock indexes fell amid growing expectations for an interest rate hike by the U.S. Federal Reserve following the release of stronger-than-expected labor data. In the Tokyo market, semiconductor- and AI-related stocks, such as Tokyo Electron and SoftBank Group, were hit by selling to lock in profits after their recent sharp rises backed by demand for data centers. Meanwhile, Iran and Israel have continued to exchange attacks in the Middle East, raising uncertainty about the future of a ceasefire agreement between the United States and Iran. Crude oil prices also remained high, prompting concerns about growing costs for companies as well as weaker consumption. “There were many factors that made it difficult for investors to buy (stocks) actively,” an official of a midsize securities company said. END [Copyright The Jiji Press, Ltd.]