The Nikkei 225 fell to a two-month low after investors sold chip-related stocks ahead of earnings from large U.S. technology companies, while renewed tensions in the Middle East curbed risk appetite. According to Jin10, the tech-heavy index at one point dropped more than 3% intraday, extending the previous trading day's decline of more than 4%, before narrowing its loss to 1.7%. "There was no fresh event that worsened sentiment; the market was simply extending the recent trend," a chief equity strategist at NLI Research Institute said.