Japanese stck markets weakened again during Friday’s trading session (October 30, 2026), with the Nikkei 225 index falling by approximately 1.3% to drop below the 64,000 level. This decline snaps a three-session winning streak, driven by mounting selling pressure on technology and semiconductor stocks. Negative sentiment emerged following disappointing earnings reports from several U.S. tech companies, fueling fresh concerns regarding the high costs of artificial intelligence (AI) investments and the profit outlook for the global technology sector.
Pressure on the tech sector intensified after Amazon shares slid about 7% in after-hours trading, following an announcement of a sharp increase in capital expenditures. Meanwhile, Intel shares plummeted roughly 23% after the company issued quarterly performance projections that fell short of expectations, while also signaling a slowdown in the personal computer market. These developments have heightened investor anxiety that massive spending on AI development may not necessarily translate into proportional profit growth.
In Japan, the weakness was widespread across stocks linked to the technology and semiconductor industries. Kioxia Holdings fell by approximately 6%, Tokyo Electron weakened by 3.6%, and Advantest saw a correction of 6.1%. SoftBank Group shares also lost 4.9%, while Lasertec experienced a sharper decline of 9.1%. Investors are now awaiting earnings reports from Kioxia and Tokyo Electron for insights into chip demand, the progress of AI investments, and the growth outlook for Japan’s technology sector over the coming quarters.
Beyond earnings reports, market attention is also focused on the Bank of Japan’s (BOJ) monetary policy decision, which is scheduled to be announced on Friday. The Bank of Japan (BOJ) is widely expected to keep interest rates unchanged, but market participants will be closely watching for any signals of further monetary tightening, given ongoing inflationary pressures and fluctuations in the yen. Should the BOJ issue a more hawkish-than-expected statement, technology stocks could face additional pressure due to rising financing costs. Consequently, the future direction of the Nikkei index will largely depend on the ability of tech companies to demonstrate returns on their AI investments, as well as the BOJ’s stance regarding the outlook for interest rates in Japan.