Japan’s Nikkei Stock Average Slips after Sharp Gain, Tech Shares Weigh

Reuters

12:31 JST, February 4, 2026

TOKYO, Feb 4 (Reuters) – Japan’s Nikkei share average fell on Wednesday, after a sharp gain in the previous session, weighed down by heavy technology stocks that tracked Wall Street’s lower.

The Nikkei .N225 fell 0.6% to 54,384.53 as of 0206 GMT.

The broader Topix .TOPX reversed course to inch up 0.12% to 3,650.02.

“The Nikkei fell, but overall sentiment was not bad as smaller shares were firm,” said Naoki Fujiwara, senior general manager at Shinkin Asset Management.

“Whether this trend will continue or not depends on the outcome of the election and the fate of the consumption tax. If the tax on food is not cut or reduced, market theme will shift to larger stocks, such as defense and artificial intelligence.”

The Nikkei climbed nearly 4% to close at a record high on Tuesday in its biggest daily gain since October 25.

Chip-testing equipment maker Advantest 6857.T fell 2% to become the biggest drag on the Nikkei. Chip-testing equipment maker Tokyo Electron 8035.T lost 1.64%.

Nintendo 7974.T fell 10% after maintaining its annual earnings and hardware forecasts. The “Super Mario” maker on Tuesday posted an 23% jump in quarterly profit on robust sales of its Switch 2 console.

Ibiden 4062.T, a maker of high-performance electronics and ceramics, tanked 12.6% to become the worst percentage loser on the Nikkei.

Topix’s smaller share index overperformed the main index, with its small share index .TOPXS rising 0.63% and the Mid400 index .TOPXM gained 0.49%.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 65% stocks rose and 31% fell, with 2% traded flat.

Bucking the trend, fiber optic cable makers rose, with Furukawa Electric 5801.T and Fujikura 5803.T jumping 8.9% and 5.5%, respectively.

Automakers rose, with Toyota Motor 7203.T advancing 3.5% to become the biggest contributor to the Topix’s gain. Honda Motor 7267.T rose 2.38%.