Nikkei 225 Falls as Chip Selloff Deepens on Iran Tensions

On June 5 the Nikkei 225 retreated from its June 3 record high of 68,645.5 as AI-linked chip stocks sold off and U.S.-Iran tensions resurfaced. The index had climbed from 65,000 in late May and 66,449 on May 29, repeatedly offsetting geopolitical risks and Brent crude spikes near $95-99. Renewed Middle East tensions and cooling chip momentum triggered profit-taking, with the Bank of Japan flagging potential rate hikes amid rising inflation risks. Markets oscillated sharply between 59,600 and record territory throughout May as AI euphoria clashed with Strait of Hormuz concerns.