FX.co ★ Japanese Share Decline on Tech Selloff

Japan’s Nikkei 225 Index slumped as much as 4.84% on Wednesday to a five-month low of 60,030 before trimming part of the decline. The selloff was led by technology shares, which came under renewed pressure amid persistent doubts about the durability of the AI-driven rally.

Japanese stocks also mirrored weakness in U.S. stock futures, after early election polling in the United States pointed to a possible Democratic takeover of both houses of Congress. That prospect has unsettled investors, who fear a “blue sweep” could usher in tighter regulation of artificial intelligence and more stringent corporate oversight.

Given that many Japanese companies are deeply exposed to global AI growth, the sector remains especially sensitive to shifts in sentiment. Technology and AI-linked names led the downturn, with notable losses in Kioxia Holdings (-5.4%), Advantest (-3.4%), Tokyo Electron (-3.4%), Taiyo Yuden (-8.3%) and SoftBank Group (-3.2%).