The Nikkei 225 Index fell 2.5% to close at 50,212, while the broader Topix Index slid 1.26% to 3,268 on Wednesday, extending losses from the previous session as technology stocks led the selloff amid mounting concerns over inflated AI valuations. Sentiment weakened further after warnings from top Wall Street executives about potential market drawdowns over the next two years and growing uncertainty around future US rate cuts. SoftBank Group slumped 10% amid its heavy exposure to AI and tech-related investments. Other major tech decliners included Advantest (-6%), Lasertec (-6.9%), Fujikura (-5.3%), Tokyo Electron (-4.1%), and Disco Corp (-8.4%). Meanwhile, Toyota Motor lost 3.7% after missing profit forecasts due to US tariff impacts, while Nintendo jumped 6.2% after raising its outlook for Switch 2 sales ahead of the holiday season.