Japanese Share Decline on Tech Selloff

2026-11-04 06:58 By Jam Kaimo Samonte 1 min. read

Japan’s Nikkei 225 Index plunged as much as 4.84% to a five-month low of 60,030 on Wednesday before recovering some of its losses, as technology shares came under renewed selling pressure amid persistent concerns over the sustainability of the AI-trade.

Japanese equities also tracked declines in US stock futures after early election polls suggested a possible Democratic takeover of both houses of Congress in the US.

Investors are concerned that a potential Democratic sweep could bring stricter regulations on artificial intelligence and increased corporate oversight.

With Japanese companies heavily exposed to the global AI expansion, the sector remains particularly vulnerable to shifts in market sentiment.

Technology and AI-related stocks led the losses, with sharp losses from Kioxia Holdings (-5.4%), Advantest (-3.4%), Tokyo Electron (-3.4%), Taiyo Yuden (-8.3%) and SoftBank Group (-3.2%).



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