Japanese stocks fell Tuesday, dragged by declines in electronics and chip-related shares following overnight losses in U.S. technology stocks. The Nikkei Stock Average dropped 0.8% to 64980.53.

Kioxia Holdings fell 2.8%, Advantest declined 3.6%, and Panasonic Holdings was down 4.0%. The dollar traded at 159.13 yen, up from 158.94 yen at Monday’s Tokyo market close.

Investors remained cautious amid escalating geopolitical tensions, with attention focused on the Iran conflict and crude oil prices. Treasury Secretary Scott Bessent said the U.S. is launching a new campaign to isolate the Iranian regime, adding to market uncertainty.

The tech-heavy sell-off echoed losses on Wall Street overnight, underscoring continued investor wariness toward high-growth sectors.