TOKYO: Japan’s Nikkei share average tumbled on Thursday, dragged lower by a sharp selloff in AI and chip shares even as the vast majority of stocks on the index rose. A Democratic sweep in US midterm elections provided the catalyst for the tech rout on bets that Democrats will slow the pace of AI data centre expansion.
Other sectors benefited though, such as real estate and retail, as investors rotated positions. The tech-heavy Nikkei ended 1.8% lower, weighed down by chip equipment firms Advantest and Tokyo Electron, which plunged 14.7% and 9.4%, respectively.
Of the Nikkei’s 225 components, 161 rose versus 64 that fell.
The broader Topix index gained 1.2%, with 25 of its 33 industry groupings advancing, led by an 11.8% rally for transport equipment and a 7.2% jump for real estate.
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