Tokyo stocks fell sharply on Monday, with the Nikkei index dropping over 4% at one point, as investors rushed to take profits from the recent surge in large-cap technology shares.
Selling pressure was broad-based, particularly concentrated in the tech sector, which had rallied strongly in previous sessions. The move reflects growing caution among investors worried about elevated valuations in some blue-chip stocks.
The Nikkei, the main benchmark for the Tokyo stock market, briefly slipped below the 30,000-point mark during morning trade before paring losses later in the session. Nonetheless, the decline was the sharpest in several months.
Analysts attributed the selloff primarily to profit-taking after a sustained tech rally, rather than to negative macroeconomic factors. However, the developments highlight investors' increasing sensitivity to short-term price fluctuations.
