FX.co ★ Japanese Share Fall as Tech Rout Persists

The Nikkei 225 Index fell 1.3% to below 63,300 on Wednesday as markets reopened after a holiday, with technology shares coming under renewed selling pressure amid persistent doubts about the durability of the AI-driven rally. Japanese equities also tracked weakness in US futures, as early election polls signaled a possible Democratic takeover of the House of Representatives and potentially the Senate.

Investors fear that a Democratic sweep could lead to tighter AI regulation and increased corporate oversight. Given Japanese companies’ substantial exposure to the global AI boom, the sector remains highly sensitive to shifts in risk appetite and sentiment.

Technology and AI-related names led the declines, with notable losses in Kioxia Holdings (-6.7%), Advantest (-4.2%), Tokyo Electron (-3.3%), Lasertec (-3%), and Taiyo Yuden (-9.6%).