# Japan's Nikkei 225 Drops 1.8% as Tech Stocks Fall on AI Concerns

- URL: https://stocks.freetheai.org/news/japan-s-nikkei-225-drops-1-8-as-tech-stocks-fall-on-ai-concerns-0c8b79
- Published: 2026-10-13T07:02:21Z
- Category: markets; sentiment: bearish; impact: medium
- Symbols: [MARKET:NI225](https://stocks.freetheai.org/symbols/MARKET-NI225)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

Japan's Nikkei 225 Index (TVC:NI225) fell 1.82% to close at 67,777 on Tuesday, marking its fourth consecutive session of losses. The decline followed an overnight selloff in technology shares on Wall Street. Japanese technology and semiconductor-related companies suffered significant losses during the trading session.

The downturn reflects re-evaluated expectations around artificial intelligence investments amid increasing interest rates and higher borrowing costs. Investors are also weighing heightened competition from China's ChangXin Memory Technologies (CXMT), which announced progress on a new chip architecture. Corporate executives and investors have expressed caution, pointing to speculative trading activity and bubble risks in the sector.

Moving forward, markets will focus on upcoming corporate capital spending plans, borrowing cost trends, and competitive shifts in the global chip industry. Investors will watch whether technology valuations can stay resilient if interest rates continue to rise.

## Key points

- The Japan 225 Index (TVC:NI225) closed down 1.82% at 67,777, extending a four-day losing streak.
- Technology shares fell sharply, led by Kioxia Holdings down 13.3% and SoftBank Group down 8.5%.
- Investors are re-evaluating AI capital spending prospects due to rising borrowing costs and new competition from ChangXin Memory Technologies.
- Prominent business figures warned of speculative behavior and bubble risks in the artificial intelligence market.

## Questions and answers

### Why did the Nikkei 225 decline on Tuesday?

The index fell 1.82% following a tech selloff on Wall Street, rising borrowing costs, and reassessments of artificial intelligence capital spending.

### Which Japanese technology stocks lost the most value?

Kioxia Holdings plunged 13.3%, SoftBank Group dropped 8.5%, Tokyo Electron fell 7.2%, Taiyo Yuden lost 4.9%, and Advantest declined 2.9%.

### What risks are impacting artificial intelligence stocks?

Rising interest rates, increased competition from China's CXMT, and concerns over speculative market behavior are weighing on tech sector sentiment.