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

Japan's Nikkei 225 plunged over 7% on Friday as a US tech stock selloff spread to Asia, prompting investors to reassess artificial intelligence spending prospects. The index briefly fell below 57,000 before recovering to 57,576.63 at midday, still down 5.7%. The decline followed a 5.5% drop in the Nasdaq Composite and a 12.3% fall in US semiconductor stocks, with concerns over stricter US regulation intensifying debate on costly AI investments. Japanese chip-linked firms like Rohm, Furukawa Electric, and Resonac led losses, while the broader Topix also fell sharply. The Nikkei is now about 21% below its June 22 record intraday high of 72,831.73, surpassing the conventional bear market threshold of 20% during trading. Regional markets also tumbled, with South Korea's Kospi briefly falling over 8% and triggering a trading halt.