Japan’s Nikkei Stock Average Slumps as AI Stocks Tumble Ahead of US Jobs Data (UPDATE 1)　

Reuters

13:09 JST, December 16, 2025 (updated at 17:15 JST)

TOKYO, Dec 16 (Reuters) – Japan’s Nikkei share average dropped more than 1% on Tuesday, weighed down by declines in chip and other artificial intelligence-linked stocks ahead of crucial U.S. employment data later in the day.

The Nikkei .N225 sank 1.6% to end the day at 49,373.25, closing below the key psychological 50,000 mark for the first time since December 3.

The broader Topix Index .TOPX lost 1.8% to 3,370.50.

Shares of Yaskawa Electric 6506.T, a robotics company developing “physical AI,” slumped 7%, while data-center cable maker Fujikura 5803.T slipped 6.7%, making them the biggest percentage decliners in the Nikkei.

Chipmaker Renesas 6723.T lost 5.1%, and silicon processor Shin-Etsu Chemical 4063.T sank 4.1%.

Some of Japan’s largest tech stocks saw smaller declines after sharp losses on Monday.

AI-focused investor SoftBank Group 9984.T fell 1.7%, rebounding from an earlier drop of up to 4.5%, following a 6% tumble in the previous session.

Chip-testing tool maker Advantest 6857.T, an Nvidia supplier, was down 1.4%, following a 6.6% plunge on Monday.

“After yesterday’s big declines, some of the big names are attracting dip buyers,” said Maki Sawada, an equities strategist at Nomura Securities.

At the same time, “today’s decline is broader,” and ahead of risk events, including the U.S. nonfarm payrolls release on Tuesday and the Bank of Japan policy decision on Friday, “a wait-and-see posture is taking hold” in the market, she said.

Of the Nikkei’s 225 components, 188 fell, 36 rose, and one ended flat.

Among the Tokyo Stock Exchange’s 33 industry groups, only airlines .IAIRL.T, paper .IPAPR.T and agriculture .IFISH.T sectors traded in the green, with airlines up 1.5% but the other two gaining just 0.2%.