Japan's Nikkei tumbles on tech rout despite strength in wider market
EWJ•EWJ•EWJ•EWJ•Japan's Nikkei fell 1.8% as chip and AI shares sold off, while the broader Topix gained 1.2% and 161 of the Nikkei's 225 components rose. Toyota surged 16.7% after raising its profit forecast.
The Nikkei fell 1.8%, dragged down by chip equipment firms Advantest, which plunged 14.7%, and Tokyo Electron, which fell 9.4%. A Democratic sweep in U.S. midterm elections fueled bets that data-center expansion could slow, prompting investors to rotate out of AI and semiconductor shares.
The Topix gained 1.2%, with 25 of its 33 industry groupings advancing. Transport equipment rose 11.8% and real estate gained 7.2%; Toyota surged 16.7% after raising its profit forecast, while Fast Retailing climbed 4.7%.
Lower crude oil prices also buoyed the broad market as investors bet the Middle East conflict could end sooner. Shipping fell 6.9% amid prospects for lower freight rates if the conflict eases.
