Taiyo Yuden Co. shares fell 3.1% to ¥9,683 on Wednesday, extending a two-day retreat that included an 11.8% collapse in the prior session.
The decline followed the disclosure by AI hedge fund Situational Awareness that it had reduced its stake in the Japanese electronic components manufacturer from 15.22% to 4.41% as of August 3. The unwind involved the sale of millions of shares to counterparties including Citadel and Jane Street, which market participants cited as the primary catalyst for the stock’s sharp decline.
The selloff in Taiyo Yuden occurred against a backdrop of broader weakness in chipmaking and artificial intelligence-linked equities. A concurrent surge in U.S. Treasury yields, driven by rising oil prices, compounded the pressure on risk assets. U.S. semiconductor-related names also posted overnight declines, amplifying the downturn.
Japan’s benchmark Nikkei 225 index extended its losing streak to a second straight day, with losses deepening to roughly 3% in early trading. The Topix index also declined. The 10-year Japanese government bond yield eased slightly to about 2.920% after surging the prior day to its highest level since 1996. Speculation that the Bank of Japan could raise interest rates as soon as September continued to weigh on investor sentiment.
