Nikkei Extends Losses as AI Selloff Intensifies
2026-11-06 00:46
By
Jam Kaimo Samonte
1 min. read
Japan’s Nikkei 225 Index plunged nearly 6% to around 57,500 on Friday, reaching its lowest level since April as it followed overnight losses on Wall Street, where the tech-heavy Nasdaq Composite entered correction territory amid mounting pressure on artificial intelligence stocks.
The selloff intensified after a sweeping Democratic victory in the US midterm elections raised concerns over tighter AI industry regulations and a possible slowdown in data center expansion.
AI-related stocks in Japan recorded significant declines, including Kioxia Holdings (-13.1%), Advantest (-14.7%), Ibiden Co (-16.3%), Tokyo Electron (-9.4%) and SoftBank Group (-6.8%).
Meanwhile, data showed that nominal wages in Japan increased at their fastest pace in nearly 30 years, reinforcing expectations of another Bank of Japan interest rate hike in December.
For the week, the Nikkei is poised to fall approximately 9%, marking its steepest weekly decline since March.