The Nikkei 225 Index dropped 1.2% to below 65,000, while the broader Topix Index fell 0.4% to 3,880 on Wednesday, giving back the previous session’s gains as investor sentiment deteriorated after the US launched “self-defense strikes” against Iran in response to the downing of an American helicopter. Japanese equities also followed a technology-led selloff on Wall Street, where semiconductor stocks came under renewed pressure. Meanwhile, domestic data showed Japan’s wholesale inflation accelerated to 6.3% year-on-year in May, the fastest pace in more than three years, driven by surging energy costs. Chipmakers and AI-related companies led the market lower, with sharp declines from Kioxia Holdings (-3.6%), Taiyo Yuden (-3%), SoftBank Group (-8.4%), Murata Manufacturing (-4.2%), and Fujikura (-6.7%). Bucking the trend, Tokyo Electron surged 6.9% to a new record high.