Tokyo’s Nikkei 225 index fell by over 4 percent on Wednesday, following a retreat in U.S. markets, particularly influenced by a drop in technology stocks. U.S. futures showed mixed results, and oil prices also saw a decline. The Nikkei experienced a nearly 5 percent decrease early in trading but was down 2.8 percent by mid-afternoon, settling at 50,090.33.
Notably, shares in SoftBank Group, an energy and tech powerhouse, plummeted 9.8 percent amid concerns regarding its investments in artificial intelligence. The stock price of computer chip manufacturer Tokyo Electron fell by 4.1 percent, and shares of Advantest Corp., which develops semiconductor testing equipment, dropped 7.2 percent.
In South Korea, the Kospi index slipped 3 percent to 3,997.71, with Samsung Electronics down 4.9 percent. SK Hynix, which had previously benefited from plans to collaborate on AI with Nvidia, lost 2.9 percent.
Conversely, Chinese markets exhibited relative stability. The Shanghai Composite index recovered from initial losses, gaining 0.2 percent to reach 3,967.53. Meanwhile, Hong Kong’s Hang Seng index edged down 0.3 percent to 25,888.16.
Investor concerns stemmed primarily from the significant sell-off of tech stocks in the U.S. markets, which has been a dominant force in driving stock gains this year. Major technology firms such as Nvidia and Microsoft, given their substantial market valuations, heavily influence broader market movements.
Stephen Innes of SPI Asset Management commented, “The rally that began in April is finally feeling its age. What we are seeing today wasn’t just a dip; it was a full-scale reality check.” He further noted, “This wasn’t the usual intraday shake-out. It felt more like the oxygen suddenly thinning at the top of a mountain that everyone assumed had no summit.”
Palantir Technologies witnessed a 7.9 percent decline despite reporting quarterly results that exceeded analysts’ estimates. Nvidia also shifted direction, dropping 4 percent, while Microsoft fell by 0.5 percent. Other sectors dipped as well, with the S&P 500 declining 1.2 percent to 6,771.55. This index had reached an all-time high just last week but remains up over 15 percent for the year.
The Dow Jones Industrial Average decreased by 0.5 percent, settling at 47,085.24, while the tech-heavy Nasdaq fell 2 percent to 23,348.64. Wall Street continues to monitor corporate earnings closely, with roughly 75 percent of S&P 500 companies having reported results that mostly surpassed expectations.
Uber’s shares slumped 5.1 percent following the release of earnings that also beat projected figures. Several prominent companies, including McDonald’s, Expedia Group, and Qualcomm, are set to release their financial results later this week.
The current corporate earnings reports have taken on added significance amid the ongoing U.S. government shutdown, leaving investors and economists without crucial updates on inflation and employment. This delay in economic data complicates decision-making for the Federal Reserve regarding interest rate policy.
Recent data indicates consumer prices increased by 3 percent in September, the highest growth since January, while hiring appears to be stagnant. This combination of factors places the Federal Reserve in a challenging position, where cutting rates to boost the economy amid a weakening job market could exacerbate inflation.
In addition to earnings news, Tesla saw a 5.1 percent decline after Norway’s sovereign wealth fund, a significant shareholder, announced its decision to oppose a proposed compensation package for CEO Elon Musk that could potentially net him $1 trillion over a decade.
Yum Brands, however, experienced a jump of 7.3 percent after announcing considerations to sell its struggling Pizza Hut unit amidst intense market competition. Novo Nordisk’s shares decreased by 1.8 percent following an increased offer to acquire drugmaker Metsera, which surged 20.5 percent. Novo Nordisk seeks to outbid Pfizer, which fell 1.5 percent.
In commodities trading, U.S. benchmark crude oil decreased by 31 cents to $60.25 per barrel, while Brent crude, the international standard, dropped 28 cents to $64.16 per barrel. The dollar fell to 153.33 Japanese yen from 153.63 yen, while the euro rose to $1.1493 from $1.1488.
Published on November 5, 2025.
