Nikkei 225 falls 2.12 percent as AI concerns hit chip stocks
Published on 10/30/2026 at 22:58 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSNikkei slides as AI fears spread
- The Nikkei 225 closed October 30 at 63,290.11 points, down 1,369.36 points or 2.12 percent.
- Chip and AI-linked shares led the decline as investors questioned the profitability of heavy artificial-intelligence spending.
- The Bank of Japan held its policy rate at 1.25 percent but signalled that further tightening remains possible.
The Nikkei 225 ended Friday's Tokyo session sharply lower as renewed concerns over the returns from artificial-intelligence investment hit semiconductor and technology shares. The index closed at 63,290.11 points, down 1,369.36 points or 2.12 percent from the previous session, according to Il Sole 24 Ore Radiocor.
Technology shares drive the retreat
The benchmark had earlier fallen as much as 3 percent before recovering part of the decline. Chip equipment heavyweights were among the main sources of pressure: Advantest and Tokyo Electron dropped 5.9 percent and 5.2 percent, respectively, in the closing-day account from Reuters, published by Mahoning Matters. Ibiden, Lasertec and SoftBank Group also came under heavy selling pressure.
The retreat followed losses in US technology shares and late earnings updates from Amazon and Intel that raised fresh questions about the scale of cash spending required to build AI infrastructure. For Japanese investors, the concern is particularly relevant because semiconductor manufacturers, equipment suppliers and other AI-linked companies have become important drivers of the Nikkei 225's recent performance.
BOJ pause leaves tightening risk
The Bank of Japan kept its short-term policy rate at 1.25 percent in an 8-1 vote. The central bank also indicated that underlying inflation was broadly consistent with its 2 percent target and announced plans to accelerate sales of exchange-traded funds from January. One board member voted against the hold and proposed raising the rate to 1.5 percent, according to Il Sole 24 Ore Radiocor.
That combination offered little support to equities during a session already dominated by the global technology sell-off. The decision leaves the possibility of another rate increase in focus, although Friday's announcement did not commit the central bank to a specific timetable.
Broad weakness, selective earnings support
The decline was concentrated in technology and semiconductor-related names rather than being uniform across all constituents. Reuters reported that 123 of the Nikkei 225's 225 components fell, compared with 100 gainers and two unchanged stocks. Konami and Oriental Land were among the notable companies to rise after company-specific developments and earnings-related factors.
The Nikkei's fall ended a three-session advance. Even so, the index remained higher for the week, illustrating the market's volatile reaction to corporate earnings, US technology developments and changing expectations for Japanese monetary policy. Investors will continue to assess whether the AI-related selling is a short-term valuation correction or a broader reassessment of technology investment prospects.
Further index coverage is available on the Nikkei 225 topic page.
