In brief
Japan's benchmark Nikkei stock index briefly fell over 3% at one point on Friday morning, with the index down 1,867.61 points (2.89%) at 10:54 a.m. local time, while the broader Topix slipped 58.54 points (1.46%). The decline was linked to a wave of lower earnings from major U.S. tech firms, Xinhua reported.
At 10:54 a.m. local time on Friday, Tokyo’s benchmark Nikkei index fell 1,867.61 points – a drop of 2.89% from Thursday’s close – after selling pressure on artificial‑intelligence and semiconductor stocks, Xinhua reported.
Earlier that morning, the Nikkei had plunged more than 3% at one point, marking a sharp sell‑off in technology‑related shares.
The broader Topix index mirrored the trend, falling 58.54 points (1.46%) to 3,944.74.
According to Xinhua, the moves followed disappointing earnings reports from several major U.S. technology companies, fueling concerns about the resilience of the AI and chip sectors.
Market participants reacted to the earnings announcements by stripping exposure from AI‑related names such as those of key semiconductor firms.
Investors who had been riding the AI rally noted that the decline could signal a shift in sentiment toward more cautious valuation of high‑growth tech stocks.
The Nikkei remains under pressure, though no definitive breakout is evident yet; analysts await further corporate guidance to gauge the depth of the pullback.