Japanese equities decline as technology stocks remain under pressure

Japanese equity markets ended lower on Thursday, with the Nikkei 225 Index declining 0.93% to close at 65,683. The market gave up part of the previous session's gains as technology and semiconductor stocks remained under selling pressure amid continued concerns over the outlook for the artificial intelligence (AI) sector.

Several companies linked to the global AI supply chain witnessed sharp declines as investors booked profits and reassessed valuations. SoftBank Group also fell ahead of its quarterly earnings announcement, with investors looking for updates on the company's AI-related investments and future growth prospects.

The decline in the market came despite supportive global developments. Oil prices eased further after Iran and Oman reached an agreement on the partial reopening of the Strait of Hormuz, reducing concerns over energy prices and inflation. Lower oil prices could improve the interest rate outlook by easing inflationary pressures.

Among individual stocks, Nintendo stood out by reporting better-than-expected quarterly earnings. Strong sales of its Switch 2 gaming console and refunds related to US tariffs supported the company's performance, helping its shares outperform the broader technology sector.

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