Japan's Nikkei slumps more than 5% as market rout deepens on AI worries
TOKYO: Japan’s Nikkei share average fell more than 5% on Friday, as heavyweight technology stocks plunged over fears of tighter regulation and a potential slowdown in AI-related spending following the Democrats’ sweep in the US midterm elections. The selloff tracked sharp overnight declines on Wall Street, where the S&P 500 and Nasdaq Composite posted their steepest daily falls since April 2025.…
Japan's Nikkei share average plummeted over 5% on Friday, as investors reacted to concerns over stricter regulation and a potential slowdown in AI-related spending following Democrats' success in the US midterm elections. The sell-off mirrored sharp declines on Wall Street, where the S&P 500 and Nasdaq Composite experienced their biggest daily losses since April 2025.
Friday's drop built upon a broader market rout that started on Wednesday, as election results began to emerge. The tech-heavy Nikkei index ended the day at 57,858.61, marking its worst single-day performance in eight months. Of the index's 225 components, 221 declined while three rose and one remained unchanged. The broader Topix index also fell 5.4%, with all 33 industry sectors recording losses.
However, the market was still trading below its session high of 7.1%. Analysts noted that the decline might persist due to ongoing uncertainties surrounding AI development costs, delays in data-center construction, and potential profitability issues.
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