Japan’s Nikkei Stock Average Falls on Tech Drag, but Set for Biggest Monthly Gain in Four

Reuters

12:20 JST, February 27, 2026

TOKYO, Feb 27 (Reuters) – Japan’s Nikkei share average retreated on Friday from a record closing high, dragged down by heavyweight chip and artificial intelligence-related shares, but was on track for its biggest monthly gain in four months.

The Nikkei .N225 fell 0.8% to 58,292.64 by 0146 GMT. It has risen 9% so far this month, heading for its biggest monthly gain since October, as Prime Minister Sanae Takaichi’s landslide election win in this month’s general elections has raised bets for big fiscal spending.

The broader Topix .TOPX was up 0.43% at 3,897.24. It has gained 9% this month in what could be its biggest monthly jump since November 2020.

On Friday, chip-testing equipment maker Advantest 6857.T fell 4.62% after Nvidia NVDA.O slipped 5.5% overnight and dragged other U.S. chip stocks lower. The U.S. Philadelphia SE Semiconductor index .SOX fell 3.2%.

Chip-making equipment maker Tokyo Electron 8035.T lost 3.77% and technology investor SoftBank Group 9984.T slipped 3.4%.

Fiber-optic cable makers, beneficiaries of AI data center investments, fell sharply, with Furukawa Electric 5801.T and Fujikura 5803.T losing more than 5% each.

“Investors rotated into beaten-down shares and sold stocks that had been strong,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

Software-related shares, a target of selloff in recent sessions on AI disruption fears, rose, with Nomura Research 4307.T and NEC 6701.T climbing 3% each.

Sony Group6758.T jumped 5.6% to become the biggest source of gains for the Topix. The audio-equipment and game maker raised its share buyback plan to up to 250 billion yen ($1.60 billion) from 150 billion yen.

Of the more than 1,600 shares trading on the Tokyo Stock Exchange’s prime market, 80% stocks rose, 17% fell and 2% traded flat.