On Friday, Toyota shares tumbled 3.9% at the Tokyo Exchange, underperforming the 1.2% drop in the Nikkei 225, which closed at 56,797.22. Investors broadly sold equities as technology and manufacturing sectors felt pressure from external uncertainties. Toyota's stock fell more sharply due to its high exposure to global production costs and demand outlook.

The market selloff was driven by fears that massive spending on artificial intelligence could destabilize credit markets and shift capital away from traditional industries. Lenders tied to AI venture financing have seen volatility, prompting investors to reassess risk in legacy manufacturing firms including automakers. Toyota faces scrutiny over capital allocation as stakeholders weigh potential disruption from AI-driven competitors.

Crude oil prices resumed their ascent as both the U.S. and Iran signaled readiness for conflict if nuclear negotiations fail, pushing benchmarks higher. Elevated oil costs raise concerns about increased energy and logistics expenses for global automakers. For Toyota, higher fuel and freight prices could tighten margins across manufacturing and distribution operations.