Japan Stocks Plunge Nearly 6% on Friday as Nikkei Loses 3,643 Points

Japan's Nikkei 225 index tumbled 5.96% on Friday, November 6, 2026, closing at 57,435 points after a five-day decline that saw the benchmark lose over 7,200 points. The steep drop, marking the largest single-day point loss in the index's history, sent technology stocks spiraling across Tokyo markets amid global concerns over artificial intelligence investment and corporate valuations.

The sell-off extended beyond the tech sector, affecting various industries, including food manufacturers and oil and coal product companies. As the broader TOPIX index declined by 5.90% to 3,707.99 points, all 33 sectors lost value, with only 21 companies in the Prime Market managing to advance. SoftBank Group, Advantest, and Tokyo Electron were among the worst-hit firms.

The decline was triggered by renewed doubts about AI company valuations following a sharp decline on Wall Street. The market's volatility also affected government bond yields, with the 10-year bond falling to 2.635%. Despite rising concerns about the sustainability of AI investments and Japan's economic stability, some corporate earnings, such as Toyota Motor's projected profit increase, painted a more optimistic picture of the country's business performance.