Nikkei plunges more than 4% as tech stock selloff intensifies

Japan's Nikkei index on the Tokyo Stock Exchange extended its losses in the morning session on June 3, at one point dropping more than 4%. The main trigger was a wave of selling in large-cap technology stocks as investors moved to lock in profits after a recent sharp rally.

According to analysts, a cautious mood gripped the market as both institutional and retail investors simultaneously cashed in gains from the previously leading stock groups. This exerted strong correction pressure on the Nikkei, which had been trading at elevated levels.

The move came amid broader volatility across Asian equity markets, with investors closely monitoring signals on monetary policy from major central banks as well as the global economic outlook.