Japanese Stocks Slide as Tech Selloff Deepens

2026-10-20 06:57 By Jam Kaimo Samonte 1 min. read

Japan’s Nikkei 225 Index dropped 1.3% to close at 64,075 on Tuesday, marking a one-month low as concerns over AI spending and higher borrowing costs continued to pressure technology shares.

Japanese equities also diverged from Wall Street’s overnight rebound, with local technology firms particularly exposed to renewed selling in AI-related stocks.

Major decliners included Kioxia Holdings (-3.4%), SoftBank Group (-6%), Taiyo Yuden (-5.1%), Fujikura (-6.5%) and Tokyo Electron (-2.6%).

Financial stocks also suffered significant losses, with Mitsubishi UFJ falling 3.7%, Mizuho Financial declining 5% and Sumitomo Mitsui dropping 3.9%.

In corporate developments, credit-default swap spreads linked to SoftBank Group rose to their highest levels in nearly four years, reflecting growing concerns over the company’s AI-related financing needs and the possibility of a major acquisition.



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