15.10.202606:41:37UTC+00Japan’s Nikkei Plunges on Tech Rout

The Nikkei 225 Index tumbled 4.9% to close at 64,426 on Thursday, its steepest one-day decline since March, as a broad selloff in technology shares deepened amid mounting doubts over the sustainability of massive investments in artificial intelligence. The sector’s credit outlook worsened on expectations that policymakers will be forced to raise borrowing costs to contain stubborn, energy-driven inflation.

Japanese companies are heavily exposed to the global AI infrastructure buildout, leaving them vulnerable to abrupt market repricing in the face of elevated AI-related valuations. Technology and AI-linked stocks led the downturn, with notable losses in Kioxia (-12.5%), Advantest (-14.2%), SoftBank Group (-8.9%), Taiyo Yuden (-10%), and Lasertec (-13.3%).

Banking stocks also retreated, including Mitsubishi UFJ (-1.6%), Sumitomo Mitsui (-1.7%), and Mizuho Financial (-2.7%).