Japanese Shares Drop as Tech Rally Fades

2026-10-22 00:56 By Jam Kaimo Samonte 1 min. read

The Nikkei 225 Index fell 1.6% to below 64,000 on Thursday, hitting five-week lows as the recent technology rally, supported by strong earnings and renewed optimism surrounding artificial intelligence, began to lose steam.

Japanese equities also tracked a decline in US stock futures after major Wall Street companies delivered mixed results.

Investors continued to assess whether substantial AI investments would eventually generate sufficient revenue.

Meanwhile, rising oil prices following a deadly attack on a Saudi oil field added to concerns over supply disruptions and inflation.

Japan remains particularly exposed to instability in the Middle East due to its heavy dependence on oil imports from the region.

Technology stocks mostly traded lower, with notable losses from Kioxia Holdings (-0.9%), Tokyo Electron (-3.7%), SoftBank Group (-0.7%), Ibiden Co (-2.6%) and Fujikura (-2.8%).



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