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Nikkei sinks over 5% as tech selloff spreads on AI and regulation fears

Reuters reports the Nikkei fell more than 5% at midday as chip and AI shares slid after the US midterm vote, with 221 of 225 components lower.

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what happened

Japan's Nikkei 225 dropped more than 5% on Friday, according to Reuters, as technology stocks sold off on worries about tighter regulation and slower spending on artificial intelligence. The move followed the Democratic sweep in the US midterm elections, and a slide in chipmakers and AI-linked shares that started on Wednesday deepened.

By the midday break the index stood at 57,858.61, down 5.3%, and was heading for its worst day in eight months. Declines were almost universal: 221 of the 225 components fell, three rose and one ended flat. The broader Topix shed 5.4%, with all 33 sectors in the red, and at one point the Nikkei had been down as much as 7.1%.

SoftBank Group lost 9.3% and chip-test equipment maker Advantest slipped 4.6%. Maki Sawada, a strategist at Nomura Securities, expects repeated bouts of volatility in AI stocks over data-center delays, development setbacks and rising costs, with investors likely to shift to a stock-by-stock approach.

why it matters

Overnight the S&P 500 and Nasdaq Composite posted their sharpest daily declines since April 2025, so the Asian selloff extended a broader retreat from risk. The Nikkei volatility gauge climbed to its highest level since March 31, and the index is heading for a weekly drop of 8.6%, its biggest since March last year.

market impact

Japanese stocks and chipmakers: selling pressure from regulation and AI-spending worries

  • Nikkei 225 pressure down — heavy selling in technology shares drags the index lower
  • SoftBank Group pressure down — steep drop in AI-linked shares weighs on the stock

tags

StockJapan

instruments

Nikkei 225TopixSoftBank GroupAdvantestS&P 500 ↗Nasdaq Composite

on polymarket

Nikkei 225 (NIK) Up or Down on November 6?5%Will the official close price for the Nikkei 225 on the final trading day of December 2026 be between 55,000 and 60,000?45%Will the official close price for the Nikkei 225 on the final trading day of December 2026 be between 80,000 and 85,000?3.1%

sources

  1. Japan's Nikkei slumps 5.5% as market rout deepens on AI worries — Reuters, 6 November 2026 at 00:29 UTC
  2. Japan's Nikkei slumps more than 5% as market rout deepens on AI worries — Reuters, 6 November 2026 at 03:02 UTC
  3. Japan's Nikkei logs worst week since 2020 as market rout deepens on AI worries — Reuters, 6 November 2026 at 07:07 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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