The Nikkei 225 index on the Tokyo Stock Exchange fell more than 2% during the trading session on May 11, marking its steepest decline in several weeks. The primary trigger was a wave of selling pressure from large-cap technology stocks.
The Nikkei's slide came as leading tech shares—including Tokyo Electron, Advantest, and SoftBank Group—all declined. Given their heavy weighting in the index, the losses dragged the broader market lower.
Analysts attributed the sell-off to investor anxiety over the global technology sector's outlook, particularly after a series of weak earnings reports from major U.S. tech firms. Additionally, a stronger yen added pressure on Japan's export-oriented companies.
In the same session, the broader Topix index also fell more than 1.5%. This marked the second consecutive decline for Japanese equities following a brief period of moderate gains.
Banking and financial stocks also joined the downturn, though their losses were less severe than those in the tech sector. Some investors rotated into defensive plays such as healthcare and consumer staples to mitigate risk.
By the close, the Nikkei ended at its intraday low with above-average trading volume, reflecting widespread market caution.
