Japan's Nikkei drops 1.7% as tech selloff hits chip stocks

Japan’s Nikkei 225 index fell 1.71% to 61,832.66 in early Friday trading, tracking a Wall Street technology-led selloff that hit semiconductor and AI-linked stocks amid concerns over valuations and spending. The decline followed Thursday’s US rout, with the Nasdaq Composite dropping 2.6% and the S&P 500 losing 1.21%. Nvidia fell about 4%, Meta Platforms dropped 7% on AI spending concerns, and Tesla declined 3.1% after cutting 2026 capital spending plans. Selling was broad-based on the Nikkei, with 120 stocks declining against 96 advancing. Sumco fell 8.95%, Disco declined 7.59%, and Mitsui Kinzoku shed 6.65%. Defensive stocks gained, with Aeon rising 3.98% and Sapporo Holdings advancing 3.74%.