The Nikkei 225 Index Closes 0.48% Lower

Japan’s Nikkei 225 Index fell as much as 2.3% before recovering to close 0.34% lower at 62,693 on Friday, as selling pressure in technology and artificial intelligence stocks began to ease. Despite the late-session recovery, the benchmark index declined 4% for the week, marking its second consecutive weekly loss as investors shifted away from high-performing tech and AI shares toward safer assets, including government bonds. Market sentiment was also weighed down by escalating tensions in the Middle East, following reports that the US and Israel had prepared plans for possible renewed strikes against Iran after next month’s midterm elections. Several major index constituents remained under pressure, including Taiyo Yuden (-3.9%), Disco Corp (-3.8%), Mitsubishi UFJ (-2.3%), Hitachi (-4.4%) and Nintendo (-1.8%). Meanwhile, Japan’s inflation accelerated in September, rising above the Bank of Japan’s 2% target and reinforcing expectations of another interest rate hike this year.

The Nikkei 225 Index fell 304 points or 0.48 percent on Friday to close at 62604 points. Leading the losses are Murata Manufacturing (-5.72%), TDK (-5.70%) and Takara (-5.23%). Top gainers were AEON (4.51%), Shiseido (3.98%) and Sapporo (2.97%).

Asian stocks fell sharply on Friday, mirroring overnight losses on Wall Street as growing concerns over the sustainability of artificial intelligence investments triggered a broad selloff in technology shares. Semiconductor makers, memory chip producers and other AI-related companies recorded significant declines, while investors moved toward safer assets such as government bonds and the yen. Sentiment was further weighed down by escalating tensions in the Middle East, following reports that the US and Israel had drawn up plans for possible renewed strikes against Iran after next month’s midterm elections. In corporate news, South Korean chipmaker SK Hynix suspended its review of a potential US initial public offering for its subsidiary, Solidigm. Technology-heavy markets in Japan and South Korea led regional losses, with the Nikkei 225 and KOSPI Composite each falling about 2%. Shares in Australia, China and Hong Kong also moved lower.