Japan's Nikkei posts worst weekly loss in six years on AI fears

Japan's Nikkei index recorded its worst weekly performance in over six years on Friday, driven by losses in Wall Street technology stocks and growing investor concerns about artificial intelligence policy shifts in the United States. The index fell 6 percent to close at 57,434.77 points, marking its largest daily drop since April 2025, with 222 of its 225 components declining. Weekly losses reached 9.3 percent, the steepest since March 2020. The selloff began Wednesday after Democrats secured control of the US Congress, raising fears of regulatory hurdles for AI infrastructure and additional challenges for smaller companies facing tight financing conditions. Japanese government bond yields fell to multi-month lows as investors sought safe-haven assets, with the 10-year yield dropping 14.5 basis points to 2.61 percent. Market traders now see a 58 percent probability that the Bank of Japan will keep rates unchanged in December. SoftBank Group shares plunged 10.8 percent, while chip equipment maker Advantest fell 5 percent.