The Nikkei 225 ended Friday's trading session with one of the largest daily declines in its history [1].
The crash highlights the extreme volatility currently affecting the technology sector and the sensitivity of Japanese markets to geopolitical instability and U.S. market trends.
Closing at 64,141 yen, the index fell by 2,694 yen [1]. Some reports indicate a wider daily swing of up to 3,005.46 yen [2, 3]. This decline is ranked as the fifth-largest drop in the index's history [1], though other reports suggest it may be as high as third [2].
AI and semiconductor-related stocks were the primary drivers of the sell-off. These specific shares experienced a temporary plunge of more than 4,000 yen [1]. The downward trend followed a sharp decline in semiconductor stocks in the U.S. market during the previous session [1].
Market analysts said the decline was further exacerbated by heightened caution regarding the situation in the Middle East [1]. Additionally, investors adopted a risk-averse posture as Japan approached a three-day holiday weekend [1].
Trading at the Tokyo Stock Exchange showed significant instability throughout the day. While some data points to the index dipping into the 68,600 yen range during the session [2], the final closing figure remained significantly lower at 64,141 yen [1].
“The Nikkei 225 ended Friday's trading session with one of the largest daily declines in its history.”
This volatility underscores a growing interdependence between the Tokyo market and U.S. tech valuations. The massive drop in AI and semiconductor stocks suggests that the 'AI bubble' may be facing a correction, while the simultaneous reaction to Middle East tensions shows that macroeconomic risks are now outweighing individual company fundamentals in Japan.
