Tokyo stocks extend losses, falling to the 66,200-yen level

2026-06-05

Semiconductor shares lead early declines

At the opening of the Tokyo stock market on the 5th, the Nikkei Average started lower for a second straight session. It slipped to the 66,200-yen range, with its decline from the previous day at one point exceeding 1,200 yen. Following losses in semiconductor-related shares on the U.S. stock market the previous day, selling spread to leading Tokyo names.

Caution over Middle East tensions continues

On the U.S. stock market on the 4th, Broadcom, the U.S. semiconductor major that released quarterly results the previous day, tumbled. The Philadelphia Semiconductor Index (SOX), which comprises major semiconductor-related stocks, also ended more than 2% lower, and in Tokyo stocks including Tokyo Electron and Advantest were sold, dragging down the Nikkei Average.

Meanwhile, over a U.S. State Department announcement that said Israel and Lebanon had agreed on implementing a ceasefire, Sheikh Qassem, leader of Lebanon's pro-Iran Hezbollah, said on the 4th that it would 'continue resistance' as long as Israeli forces remained deployed in southern Lebanon. Reports also said Israel's Defence Minister Katz had indicated that attacks on Lebanon would continue for the time being, and concern that talks aimed at ending fighting between the U.S. and Iran could stall weighed on the market.

The TOPIX started higher but at one point turned lower. Among individual stocks, Ibiden, Fanuc and Fujikura fell. On the other hand, Recruit, Trend and Konami G rose.

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