Tokyo stocks tumble as AI tech rout widens | JQJO

Tokyo, Japan — Global equity markets came under renewed pressure on Friday, July 17, 2026, as a sharp pullback in artificial intelligence and semiconductor shares triggered broad-based declines across Asia. Tokyo’s Nikkei 225 led losses, plunging 5.8% in a steep afternoon slide that marked its sharpest one-day fall in months and sent shockwaves through international financial markets. The index lost more than 3,800 points to close at 62,945.97 after briefly dropping below the key 63,000 level for the first time in over a month. The rout centered on heavyweight technology, semiconductor, and electronic component makers that had previously benefited from strong AI-driven optimism and rapid valuation gains.

Japan — The selloff hit major Japanese tech names, with memory chip producer Kioxia Holdings tumbling 16.1% in its biggest decline in months, computer chip equipment maker Tokyo Electron falling 8.2%, and chip testing specialist Advantest sliding 7.2%. SoftBank Group, which has invested tens of billions of dollars in AI-related businesses, dropped 9% as investors reassessed the sector’s rapid run-up. The pressure spread across the region, pulling Hong Kong’s Hang Seng Index down 2% to 24,514.29, while China’s Shanghai Composite Index fell 1.6% to 3,818.59. In Taiwan, the benchmark index plunged more than 5% amid heavy selling of semiconductor heavyweights and AI hardware supply chain partners, while South Korean markets were closed for a public holiday, limiting immediate regional spillover there.