Japanese stocks pared a historic morning rally, sparked by overnight gains in U.S. technology shares, to finish almost entirely flat on Wednesday, as late-session profit-taking erased a major tech-driven breakout.
The Nikkei 225 closed virtually unchanged, up just 3.32 points to finish at 64,999.41.
Chip-related stocks in Japan spearheaded the morning sentiment, with heavyweights Advantest (TYO:6857) and Tokyo Electron (TYO:8035) both surging more than 5% intraday before trimming gains by the closing bell.
On the domestic front, the yen's real effective exchange rate has dropped to its lowest level since the 1970s, severely eroding Japan's external purchasing power as persistent trade deficits and volatile oil import costs compound structural selling pressure, Nikkei reported Wednesday, citing the Brookings Institution's Robin Brooks.
Meanwhile, on the corporate side, Japanese machinery manufacturer Nabtesco (TYO:6268) plans to begin mass production of fully electric power steering systems for large commercial vehicles in 2027, Nikkei reported Wednesday.
Murata Manufacturing (TYO:6981) declared a year-end dividend of 35 yen per share for fiscal year 2025, matching earlier forecasts and higher than the 30 yen per share paid a year ago.