Japan's Nikkei slumps as Wall Street tech selloff bites

Japan’s Nikkei 225 dropped 1.71% to 61,832.66 in Friday’s early session, while the Topix was down 1.26% at 3,947.11. Business Recorder reported that selling in Japanese shares followed a technology-led decline on Wall Street, where chipmakers and companies associated with artificial intelligence faced pressure. The Nasdaq lost 2.6% on Thursday, and the S&P 500 declined 1.21%, with technology among the weakest sectors.

Nvidia fell about 4%, Meta lost 7% after reporting earnings, and Tesla was down 3.1% after its results and a reduction to its 2026 capital spending plans. The Japanese benchmark recorded 120 declining shares against 96 advancers. Sumco, Disco and Mitsui Kinzoku were among its biggest percentage losers, while Aeon, Sapporo Holdings and Kikkoman led gains; Kikkoman was on course for its highest close since July 2024. Monex Securities analyst Yoshitaka Araya said the US selling tone pointed to a weak start for Japanese trading.