Nikkei falls 1.71% as Wall Street tech selloff bites

Japan's Nikkei 225 fell 1.71% to 61,832.66 in early trading on Friday, tracking a technology-led selloff on Wall Street overnight, while the broader Topix slipped 1.26% to 3,947.11.

The Nasdaq slid 2.6% and the S&P 500 fell 1.21% on Thursday, with technology leading sector declines as investors rotated into defensive areas including consumer staples and healthcare. Nvidia sank about 4% in the AI and semiconductor selloff, Meta dropped 7% after earnings as investors focused on its AI spending, and Tesla fell 3.1% after earnings and a cut to its 2026 capital spending plans.

"Following the selling-dominated tone in the US market, the Japanese market is expected to start today with sellers in control," Monex Securities analyst Yoshitaka Araya said in a report.

Breadth on the Nikkei 225 was negative, with 96 advancers against 120 decliners. Sumco led the fallers, down 8.95%, followed by Disco, 7.59% lower, and Mitsui Kinzoku, which lost 6.65%.

The largest percentage gainers were Aeon, up 3.98%, Sapporo Holdings, 3.74% higher, and Kikkoman, which gained 3.69% and was on track for its highest close since July 2024.