Tokyo Stocks Close Lower as Tech Shares Tumble

Tokyo stocks closed lower on Thursday, with the Nikkei index dropping to a three-week low as technology shares followed overnight declines in the U.S. market.

Japan’s benchmark 225-issue Nikkei Stock Average fell 390.52 points, or 1.05%, to close at 36,657.09, marking its lowest level since August 14. The broader Topix index also finished lower, shedding 12.73 points, or 0.48%, to end at 2,620.76.

The decline was largely driven by sell-offs in high-tech stocks, which mirrored the overnight slump of the Nasdaq, a tech-heavy U.S. index. Export-oriented companies also took a hit due to the yen’s appreciation, which dampens the competitiveness of Japanese goods abroad.

However, analysts noted some support for the market as investors looked to buy stocks on dips following the Nikkei’s significant fall the previous day, marking its third-largest decline of the year.

Investors remained on edge, awaiting key U.S. economic data set to be released later in the day, which could offer further insight into the strength of the U.S. economy.