Nikkei slides further as oil climbs and AI spending worries hit tech

what happened

Japan's stock market extended its losses on Thursday, with the Nikkei dropping 2.65% to close at 62,907.84 points, well off its intraday high of 64,866.44. The index had already shed nearly 1,300 points, or 2%, over the previous two sessions. Technology, manufacturing, finance and resource stocks all pulled the benchmark lower.

On Wall Street, the Nasdaq lost 2.60% and the S&P 500 slipped 1.21%. Nvidia, CoreWeave, Meta Platforms and Tesla fell on liquidity concerns tied to debt-financed AI infrastructure spending. The Dow Jones was nearly flat, gaining 0.02%.

West Texas Intermediate for December delivery rose 2.25% to $99.34 a barrel after reports that the U.S. and Israel may plan a joint military operation against Iran following the November midterm elections. Japan is also due to publish September consumer price data and preliminary October PMI readings, according to RTTNews and dpa-AFX.

why it matters

Higher oil and uncertainty around technology stocks are pressuring Asian markets, and investors are watching Japan's data releases. September PMI readings were 54.1 for manufacturing and 51.3 for services, so the October figures could shift sentiment on the Nikkei.

market impact

Asian equities: weak Wall Street and costlier oil add pressure on the Nikkei

tags

instruments