Solid Gold Berjangka – Japan’s Nikkei 225 index fell 1.6% to around 61,900 during Friday’s trading session (October 23), hitting its lowest level in nearly three months. The decline followed a sell-off in technology stocks on Wall Street, which reignited concerns regarding the investment outlook for artificial intelligence.
The heaviest pressure came from semiconductor stocks, memory chip manufacturers, and other companies linked to AI. Investors began reducing their exposure to riskier assets, shifting instead toward instruments perceived as safer, such as government bonds and the Japanese yen.
Market sentiment was further dampened by escalating tensions in the Middle East. Reports of potential new attacks by the U.S. and Israel against Iran—following the U.S. elections in November—have heightened concerns over geopolitical risks and bolstered demand for "safe-haven" assets.
Technology stocks were the primary drag on the Nikkei: Kioxia fell 7.6%, SoftBank Group dropped 7.5%, Fujikura weakened by 6.8%, Tokyo Electron declined 6%, and Advantest lost 4.2%. Financial and industrial stocks also saw declines, while the consumer sector proved relatively more resilient to the selling pressure.
On a weekly basis, the Nikkei has fallen by more than 5%, signaling that selling pressure remains significant within the Japanese market. Future direction will depend heavily on sentiment toward the AI sector, movements on Wall Street, and global geopolitical developments—all of which could trigger further market volatility. (srh)