Japan's Nikkei plunges to one-month low, tracking US sell-off

Nikkei share average: Japan's stock market experienced a significant decline on Tuesday, mirroring a sharp selloff on Wall Street. The Nikkei share average plummeted over 2 per cent, reaching its lowest point since mid-March.

The primary driver of the Nikkei's fall was the overnight decline in US equities. Rising US Treasury yields and heightened geopolitical tensions stemming from the Iran-Israel conflict fueled investor anxiety. 

While the Japanese Yen remains weak compared to other currencies, this factor has failed to bolster domestic stocks. The strength of the US Dollar against other major currencies outweighed any potential benefit from a weaker Yen for Japanese exporters.

Japanese technology stocks mirrored the losses witnessed in their US counterparts. Chip-making equipment manufacturers, Tokyo Electron and Advantest, led the decline on the Nikkei.

Shares of Fast Retailing, owner of the Uniqlo brand, also witnessed a drop. Department store operators J.Front Retailing and Isetan Mitsukoshi Holdings suffered even steeper losses, with J.Front cutting its annual profit forecast.

Bucking the downward trend, cinema operator Toho surged after announcing a strong profit increase and a share buyback program. Nidec, a motor maker, also saw significant gains on the back of a planned production expansion for AI server components.

(With Reuters inputs.)