Japan's Nikkei 225 plunges 7% as US tech rout hits Asian markets

Japan's Nikkei 225 plunged over 7% on Friday as a dramatic collapse in US tech stocks spread to Asia, forcing investors to reassess artificial intelligence spending prospects. The index briefly fell below 57,000 before recovering to 57,576.63 at midday in Tokyo, still down 5.7%. The selloff followed a 5.5% drop in the Nasdaq Composite and a 12.3% fall in US semiconductor stocks, triggered by concerns over stricter US regulation and Democratic midterm election wins. Japanese AI suppliers like Rohm, Furukawa Electric, and SoftBank Group suffered double-digit losses, while the broader Topix fell 5.8%. The Nikkei is now about 21% below its June record high, surpassing the conventional 20% bear market threshold during the session. Regional markets also fell sharply, with South Korea's Kospi briefly suspending trading, as investors sought safety in government bonds.