Japan’s Nikkei Stock Average Slides as Investors Book Profit on Tech Stocks (UPDATE 1)　

Reuters

13:23 JST, November 14, 2025 (updated at 16:17 JST)

TOKYO, Nov 14 (Reuters) – Japan’s Nikkei share average sank on Friday, as tech stocks tracked Wall Street peers’ overnight losses amid mounting concerns over sky-high valuations.

The Nikkei .N225 fell 1.8% to end the day at 50,376.53. The broader Topix .TOPX lost 0.7% to 3,359.81.

Artificial intelligence-linked firms led the drop, with chip-testing equipment maker Advantest 6857.T falling 5.5%, startup investor SoftBank Group 9984.Tsliding 6.6% and chip-making tool manufacturer Tokyo Electron 8035.T shedding 6.1%.

Stocks linked to data center expansion also retreated, with Hitachi 6501.T and Fujikura 5803.T down 5% and 6.4%, respectively.

“It looks like investors are taking profits on these AI-related stocks,” as worries about stretched valuations simmer, said Nomura Securities strategist Fumika Shimizu.

“We are seeing a bit of sector rotation,” particularly into companies that have posted strong earnings this season, she added.

Paper company TOPPAN Holdings 7911.Tsoared 14% and property developer Tokyo Tatemono 8804.Tjumped 10.4% on robust financial results, becoming the Nikkei’s two biggest percentage gainers on the day.

The majority of the Nikkei’s 225 components gained, with 121 advancers versus 101 decliners. Three ended flat.

The Nikkei eked out a 0.2% advance for the week, kept afloat by Monday’s 1.3% rally, which helped the index retrace part of last week’s more than 4% slide.

Valuation worries around the AI narrative have driven dips in shares globally all month.

A flashpoint could come next week, with AI bellwether Nvidia reporting earnings on Wednesday.