Japan's Nikkei fell 5.3% to 57,858.61 at midday Friday, after dropping as much as 7.1%, as technology stocks slid on concerns about regulation and AI spending. It was on track for an 8.6% weekly loss, while the Topix was down 5.4%.
The Nikkei fell 5.3% at the midday break Friday, heading for its worst day in eight months, after hitting a session low of down 7.1%. The selloff followed sharp overnight declines on Wall Street and extended a rout in Japanese chipmakers and AI-linked stocks that began Wednesday.
A total of 221 of the Nikkei's 225 components declined. SoftBank Group fell 9.3%, while Advantest dropped 4.6%; the broader Topix lost 5.4%, with all 33 industry sectors lower.
Investors were concerned about tighter regulation and a potential slowdown in AI-related spending after Democrats swept the US midterm elections. Nomura Securities strategist Maki Sawada said concerns could return over delays in AI data-center construction and development, as well as rising costs, and that the market was likely to become more selective about AI-related stocks.
