The Nikkei 225 Index Closes 2.33% Lower

Japan’s Nikkei 225 Index dropped 2.12% to close at 63,290 on Friday, ending a three-day winning streak as disappointing earnings from major technology companies heightened concerns over the sustainability of the AI trade. In after-hours trading, Amazon shares plunged around 7% after revealing a sharp increase in capital expenditures, while Intel tumbled 23% following a weaker-than-expected quarterly outlook and signs of slowing demand in the PC market. On the domestic front, investors awaited earnings reports from Kioxia Holdings and Tokyo Electron for further insight into AI-related demand, with their shares falling 7.1% and 5.2%, respectively. Other major technology stocks also suffered significant losses, including Advantest (-5.9%), SoftBank Group (-6%) and Lasertec (-8.8%). Meanwhile, the Bank of Japan maintained its policy rate at 1.25%, but signaled that underlying inflation has finally reached its 2% target, potentially paving the way for a rate hike in December.

The Nikkei 225 Index decreased 1505 points or 2.33 percent on Friday to close at 63154 points. The decline was led by Fujitsu (-16.20%), Murata Manufacturing (-11.38%) and Lasertec Corp (-10.91%).

Asian stock markets mostly declined on Friday, mirroring losses on Wall Street as technology and artificial intelligence-related shares came under renewed selling pressure following disappointing earnings from major US tech companies. In after-hours trading, Amazon plunged around 7% after revealing a sharp increase in capital expenditures, while Intel sank 23% after providing a weaker-than-expected quarterly outlook and pointing to a slowdown in the PC market. Persistent concerns about the AI trade have also weighed on Asian markets, triggering significant losses among major South Korean and Japanese technology companies, including Samsung Electronics (-4%), SK Hynix (-7%), Kioxia Holdings (-9%), Advantest (-8%) and SoftBank Group (-5%). South Korea’s Kospi Index dropped nearly 5%, while Japan’s Nikkei 225 declined over 2%.