FX.co ★ Japan’s Nikkei Extends Losing Streak to Five Sessions

Japan’s Nikkei 225 edged down 0.05% to finish at 67,744 on Wednesday, giving up earlier gains and extending its losing streak to a fifth straight session. Market sentiment deteriorated after Dutch chip-equipment manufacturer ASML warned it would be unable to fully meet demand over the next two years, stoking doubts about the durability of the current AI investment boom.

Investors also remained wary as rising oil prices and ongoing supply disruptions in the Middle East reinforced inflationary concerns. Earlier in the day, equities found some temporary support from dovish comments by New York Fed President John Williams, who suggested that while one additional rate hike may be appropriate this year, further tightening in 2027 was unlikely to be necessary.

Technology and financial stocks led the decline. Kioxia Holdings fell 3.2%, Lasertec dropped 1.6%, and Tokyo Electron lost 2.7%. Among major banks, Mitsubishi UFJ slipped 1.9%, while Mizuho Financial retreated 2.9%.