Nikkei 225 Drops Two Days on Tech Stock Slump

The Nikkei 225 Index declined for two straight sessions on August 6 and 7, 2026, driven by a sharp sell-off in technology and chip-related stocks. On Thursday, the index fell 1.72 percent to close at 65,157.13, reversing gains from previous sessions. This downturn was led by losses at SoftBank Group, Tokyo Electron, and Advantest, though gains in the banking sector and Toyota provided a partial offset.

Losses extended into Friday, with the index falling another 0.98 percent to close at 65,039.19. Technology stocks continued to struggle, with Lasertec dropping 9.8 percent and SoftBank Group falling 6.1 percent in early trade. These declines followed negative cues from Wall Street, where the Dow Jones Industrial Average slumped 464.02 points. While automakers like Toyota and Honda Motor Company saw gains, they were insufficient to stabilize the broader market.

Market volatility was further compounded by a weakening yen, which traded near 158.49 yen to the dollar on Friday, and persistent uncertainty regarding Middle East conflict and energy costs. Adding to the economic pressure, the Ministry of Internal Affairs and Communications reported that average household spending in June fell 3.3 percent year-on-year to 290,886 yen, missing expectations for a 0.8 percent increase.