Japan’s Nikkei share average declined on Friday for the second straight session after reaching a record high earlier this week, as momentum in the booming technology sector began to wane. The benchmark Nikkei 225 Index sank 1.3% to close at 66,588.12, managing a 0.3% gain for the week. The broader Topix decreased by 0.07% to 3,949.09. The index closed at an all-time peak of 68,402.13 on Wednesday and has gained 34% so far this year.

The tech-heavy Nasdaq closed lower in the U.S. overnight after chipmaker Broadcom missed revenue expectations, dampening euphoria over AI investment. Conversely, data indicating a 1.9% increase in real wages in Japan for April, marking the fourth month of growth, provided a boost to the overall market. “Although stocks related to AI and semiconductors are experiencing declines today, we are observing positive movements across a wide array of other sectors and stocks,” stated Wataru Akiyama.

Wage growth drives higher consumption, which subsequently enhances corporate performance, and this is believed to be bolstering the overall strength of Japanese equities. In the Nikkei index, 129 stocks moved up while 96 moved down. The biggest laggards in the index were technology industry suppliers, with Sumco down 7.4%, followed by Ibiden, down 6.9%, and Tokyo Electron, which lost 6.6%. The top gainers were Japan Steel Works, up 9%, followed by Trend Micro, which rose 7.3%, and T&D Holdings, up 6.4%.