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Nikkei Briefly Breaks 50,000 on AI Rout Before Closing Down 1,284 Points

Profit-taking in AI and chip leaders after Wall Street losses triggered a sharp reversal.

Overview

  • Japan’s benchmark fell more than 2,400 yen intraday on Nov. 5 and dipped below the 50,000 mark before rebounding.
  • The index finished down 1,284.93 at 50,212.27, trimming steep early losses that followed a sector-wide sell-off.
  • AI and semiconductor heavyweights, including SoftBank Group, Advantest and Tokyo Electron, led declines after recent gains.
  • Overnight U.S. equity weakness and higher Treasury yields, tied to slower expected Fed cuts, fed risk-off sentiment in Tokyo.
  • The yen strengthened into the upper-153 per dollar range in Tokyo from the mid-154s in New York, with traders citing Finance Minister Sanae Katayama’s remarks as checking further yen weakness.