Nikkei 225 plunges 7% as US tech selloff hits Japan

Japan's Nikkei 225 plunged over 7% on Friday, November 6, as a sharp selloff in US tech stocks spread across Asia, prompting investors to reassess artificial intelligence spending prospects. The index briefly fell below 57,000 before recovering to 57,576.63, still down 5.7%. The decline followed a 5.5% drop in the Nasdaq Composite and a 12.3% fall in US semiconductor shares, with concerns over stricter US regulation intensifying debates on costly AI investments. Japanese chip-related firms like Rohm, Furukawa Electric, and Resonac led losses, while the broader Topix fell 5.8%. The Nikkei traded about 21% below its June 22 record peak, surpassing the conventional bear market threshold during the session. The selloff was regional, with South Korea's Kospi briefly dropping over 8% and triggering a trading halt, as investors sought safety in government bonds.