Tokyo stocks plunge sharply in morning session on profit-taking amid overbought concerns

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Tue Jun 2, 2026 11:47 am JST Market

The Nikkei Stock Average plummeted 1,100.84 yen to finish Tuesday’s morning session at 65,833.49, retreating sharply from Monday's close. Turnover on the Tokyo Stock Exchange Prime Market reached an estimated 1.35 billion shares, with trading value hitting 5.9452 trillion yen. Decliners heavily overwhelmed gainers by 1,261 to 280, while 22 issues ended the morning session unchanged.

Selling pressure dominated the Tokyo market as mounting anxiety over near-term market overheating and futures-linked program trading accelerated the slide. Geopolitical jitters intensified on reports that U.S.?Iran peace negotiations had hit a standstill, prompting risk-off sentiment and triggering heavy liquidations of Nikkei 225 futures by foreign investors. The index shed over 1,100 yen by the midday bell, slipping beneath the psychological 66,000 yen threshold. High-flying artificial intelligence (AI) and semiconductor-related shares, which had been engine drivers for the market's recent bull run, bore the brunt of the aggressive profit-taking, leaving roughly 80% of Prime Market listings deep in the red.

Among individual listings, Kioxia Holdings <285A> topped the trading value chart but ended the morning lower, while second-ranked SoftBank Group Corp. <9984> reversed downward after an initial morning pop. Electronic component majors faced widespread weakness, with Murata Manufacturing Co., Ltd. <6981> turning lackluster and TAIYO YUDEN CO., LTD. <6976> extending its slide. Steep losses plagued Furukawa Electric Co., Ltd. <5801> and IBIDEN CO., LTD. <4062>, while defense heavyweight Mitsubishi Heavy Industries, Ltd. <7011> faced persistent downward pressure. Notably, MUSASHI SEIMITSU INDUSTRY CO., LTD. <7220> collapsed to its daily lower limit, and NIPPON CHEMI-CON CORPORATION <6997> plunged. Conversely, chip-testing leader ADVANTEST CORPORATION <6857> defied the market rout to post solid gains, while Nintendo Co., Ltd. <7974> and SONY GROUP CORPORATION <6758> remained resilient. Sakai Chemical Industry Co., Ltd. <4078> led the market's percentage gainers, while AGC Inc. <5201> and Y.A.C. HOLDINGS CO., LTD. <6298> attracted substantial buying interest to book strong advances.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.