Japan’s Nikkei Falls Over 1% as Wall Street Tech Selloff Rattles Markets

Japan’s Nikkei 225 was down 1.71% to 61,832.66 in early Friday trading following a decline in technology stocks on Wall Street. As investors took a fresh look at AI stocks and lowered their prices on concern over the levels of spending and high valuations, there were some bright spots among Japanese consumer and food stocks.

Nikkei 225 falls to 61,832.66 as Topix reaches 3,947.11

Japanese markets fell in early Friday trading, with the Nikkei 225 down 1.71% at 61,832.66 and the broader Topix index down 1.26% at 3,947.11, Reuters reported.

120 Nikkei stocks declined against 96 advancing

The Nikkei’s market breadth showed 120 stocks declining and 96 advancing, Reuters reported.

Sumco, Disco and Mitsui Kinzoku led the Japanese losses

Sumco was the Nikkei’s biggest percentage decliner after falling 8.95%, Reuters reported. Disco declined 7.59%, while Mitsui Kinzoku shed 6.65%.

Aeon, Sapporo Holdings and Kikkoman rose

Aeon was the Nikkei’s biggest percentage gainer after rising 3.98%, according to Reuters. Sapporo Holdings advanced 3.74%. Kikkoman gained 3.69% and was on track for its highest closing level since July 2024, Reuters reported.

US technology losses preceded the Japanese market decline

The US stock market declined sharply on Thursday, with the Nasdaq Composite down 2.6% and the S&P 500 falling 1.21%. Technology stocks fell the most among the US sectors, as investors moved to consumer staples and healthcare stocks, Reuters reported.

Nvidia fell about 4% during the selloff in artificial-intelligence and semiconductor shares. Meta Platforms dropped 7% after its earnings report as investors focused on its artificial-intelligence spending. Tesla declined 3.1% after reporting earnings and cutting its capital-spending plans for 2026, Reuters reported.

Reuters reported that Japanese shares declined as investors reassessed artificial-intelligence-related investments, valuations and the sustainability of the technology rally.