In brief
The benchmark Nikkei collapsed 5.96%, hitting its lowest level since mid‑April and its third‑largest point drop ever. AI‑related shares and semiconductors led the rout, while concerns over tighter U.S. post‑midterm regulation and a slowdown broadened the sell‑off across most Prime Market stocks. Topix fell 5.90%, and the downturn mirrored losses on Wall Street’s AI sector.
Tokyo stocks fell sharply on Friday, with the Nikkei 225 slumping 3,643.13 points, a 5.96 percent drop that marked the third‑largest point decline on record, according to Xinhua.
At 57,434.77, the benchmark was the lowest closing level since mid‑April, and the index had briefly dipped more than 7 percent during the session.
AI‑linked shares and semiconductors were the main drivers of the sell‑off, a fact echoed by Mainichi and the Japan Times which both reported the same 5.96 percent fall.
Investors blamed the dip on renewed concerns that the Democratic party’s gains in the U.S. midterm elections could open the door to tighter regulation of data‑centre construction and AI investment.
The potential for an economic slowdown also weighed on sentiment, broadening the decline beyond technology firms, analysts said.
The Topix index mirrored the chaos, tumbling 232.40 points – a 5.90 percent slump – to finish at 3,707.99, as the broader market fell.
Sell‑pressure spread across nearly all Prime Market stocks, underscoring worries that the downturn could touch sectors beyond AI and semiconductors.
For context, a Facebook post from The Financial Times noted a 4.4 percent drop in the Nikkei, but the same level was confirmed by Xinhua and Japan Times, making 5.96 percent the prevailing figure in credible reports.
