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Nikkei Plunges More Than 2,500 Points in Thursday Morning Session

TOKYO - Japan's Nikkei stock average plunged more than 2,500 points at one stage during trading in Tokyo on October 15, as a sharp sell-off in semiconductor shares followed a surge in U.S. long-term interest rates and renewed concerns over the outlook for artificial intelligence investment.

The decline came after U.S. consumer price inflation for September exceeded market expectations, temporarily fueling speculation that the Federal Reserve could raise interest rates in the near future. The stronger-than-expected inflation figures also pushed up U.S. long-term bond yields.

Rising borrowing costs have raised concerns about their potential impact on investment in artificial intelligence, particularly in the semiconductor industry, which has benefited from strong demand for AI-related infrastructure and technology.

Semiconductor-related stocks fell sharply on the New York market on October 14 as investors reassessed the outlook for AI investment in a higher-interest-rate environment.

The selling pressure carried over into Tokyo on October 15, with sell orders for semiconductor-related shares surging immediately after the opening of trading, driving the Nikkei sharply lower.

Source: TBS

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Japan experienced widespread thunderstorms, strong winds and sudden downpours on October 14 as a cold front swept across the country, while the Japan Meteorological Agency warned that a tropical depression south of Japan could develop into Typhoon No. 30 within 24 hours, marking the first time in 13 years that the annual typhoon count has reached 30.

Agriculture, Forestry and Fisheries Minister Yana submitted his resignation to Prime Minister Sanae Takaichi on the evening of October 14 over a controversy involving shuttle buses and other issues, prompting Takaichi to acknowledge her responsibility for appointing him and announce plans to name a successor on October 15.

Japan's first Disney cruise ship will be named "Disney Imagination," with Oriental Land and its partners planning to launch the service in spring 2029, offering a new Disney-themed travel experience departing from Tokyo.

Tokyo's 23 wards have decided to establish a new small-scale public crematorium to address rising fees at privately operated facilities and growing concerns that cremation capacity could become insufficient around 2040 as the city's aging population drives up the number of deaths.

Japan is facing a growing wave of cyberattacks as advances in artificial intelligence remove the language barrier that once made Japanese companies difficult targets for overseas hackers, with more than 68 million personal records potentially exposed in a series of security incidents over the past two weeks.

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Japan's Nikkei stock average plunged more than 2,500 points at one stage during trading in Tokyo on October 15, as a sharp sell-off in semiconductor shares followed a surge in U.S. long-term interest rates and renewed concerns over the outlook for artificial intelligence investment.

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Tokyo stocks edged lower on October 14, with the Nikkei 225 closing at 67,744, down 33 points, as an early rebound in semiconductor and artificial intelligence-related shares faded late in the session before the release of U.S. inflation data.

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East Japan Railway (JR East) is preparing to enter Japan's fiercely competitive mobile payment market with the launch of teppay on October 20, introducing a new QR code payment service through its Mobile Suica platform and potentially tapping into a customer base of 45 million Suica users.

Japan's Fair Trade Commission plans to issue cease-and-desist orders against six construction companies, including firms affiliated with Japan Railways, over repeated bid-rigging in maintenance contracts for Tokyo's Toei subway network and other railway lines, with five companies facing surcharges totaling approximately 500 million yen.

Japan's domestic corporate goods price index rose 6.8% in September from a year earlier, slowing to below 7% for the first time in four months but remaining at a high level as soaring crude oil prices and growing demand for AI-related materials continued to push up costs, according to data released by the Bank of Japan on October 13.

Tokyo stocks fell sharply on October 13, with the Nikkei 225 closing at 67,778, down 1,253 points, as selling in artificial intelligence and semiconductor-related shares dragged the headline index below 68,000 after a three-day holiday weekend.