Nikkei 225 tumbles 5.96% to 57,434.77 in third-largest point drop
Published on 11/06/2026 at 18:49 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSWhat drove the Tokyo sell-off
- The Nikkei 225 closed at 57,434.77 on November 6, down 3,643.13 points or 5.96 percent from Thursday.
- It was the index's third-largest single-day point loss on record and its first close below 60,000 since May 20.
- Investors sold AI, semiconductor and data-center-related shares amid concerns that US policy could slow AI infrastructure investment.
The Nikkei 225 ended Friday's Tokyo session at 57,434.77, down 3,643.13 points or 5.96 percent from Thursday's close of 61,077.90. The benchmark fell below 60,000 for the first time since May 20 and recorded its third-largest single-day point loss on record, according to Jiji Press. The move extended the index's decline to a fifth consecutive session.
AI concerns drive broad sell-off
The decline followed a sharp retreat on Wall Street on Thursday. The Nasdaq Composite fell 5.5 percent, while the S&P 500 lost 4.4 percent, according to The Japan Times. Investors reassessed the outlook for artificial-intelligence infrastructure after the Democratic Party's strong performance in the US midterm elections raised concerns about tighter regulation and possible obstacles to new data-center projects.
The pressure was concentrated in the market's technology complex. The Japan Times reported sharp losses in Japanese AI, chip and data-center-related companies, including Rohm, Furukawa Electric, Resonac, Kioxia and SoftBank Group. Selling nevertheless spread beyond technology shares, leaving the decline broader than a single-sector correction.
Index breaks below key thresholds
The Nikkei's closing level was materially below its recent peak. The Japan Times reported that the index had reached an all-time high of 72,831.73 in June and remained more than 20 percent below that level after Friday's fall. That places the benchmark in a technically weak position, although the index level alone does not establish how quickly investor sentiment may recover.
There were isolated pockets of resilience. Daikin Industries benefited from an earnings-related forecast increase and was one of the few notable gainers cited by The Japan Times. Its performance contrasted with the widespread selling in semiconductor and AI-linked names, underscoring the market's sharply differentiated reaction to company-specific earnings news.
For investors, Friday's close highlights the sensitivity of Japan's technology-heavy benchmark to US policy expectations, global technology valuations and the financing outlook for AI infrastructure. The next session will be watched for evidence of stabilization, further forced selling or a rotation toward companies less exposed to the AI investment cycle. Further coverage is available on the Nikkei 225 topic page.
