Nikkei Tumbles Most in Three Years on Concerns of AI Bets, BOJ
- Gauge slumps about 10% from peak hit two weeks earlier
- Volatility jumps as flight from risk continues: SMBC Trust
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Japan’s Nikkei 225 Stock Average entered a technical correction as an AI-driven rally in technology shares went into reverse and concerns grew that the Bank of Japan may be poised to hike interest rates.
The Nikkei declined 3.3% on Thursday, the most since June 2021, taking its drop to about 10% from an all-time peak hit just two weeks ago. Renesas Electronics Corp. led declines following disappointing earnings. The broader Topix slipped 3%, with exporters including Hitachi Ltd. and Nissan Motor Co. retreating.