---
title: "Japan's Nikkei index recorded its largest drop since April as the market expressed concerns over the valuations of technology stocks"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/264343431.md"
description: "The Japanese stock market experienced its largest decline in nearly six months, with the Nikkei 225 index dropping as much as 4.7%, due to a decrease in global risk appetite affecting technology stock valuations. The market's optimism about artificial intelligence has raised concerns, leading investors to seek safe-haven assets, with the yen rising to its highest level in nearly a week. Analysts pointed out that this is a moment of liquidation after a significant rally, with sentiment shifting from optimism to rationality. AI-related stocks such as SoftBank and Advantest saw significant declines, but SoftBank has still accumulated a gain of over 140% this year"
datetime: "2025-11-05T04:40:40.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/264343431.md)
  - [en](https://longbridge.com/en/news/264343431.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/264343431.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/264343431.md) | [繁體中文](https://longbridge.com/zh-HK/news/264343431.md)


# Japan's Nikkei index recorded its largest drop since April as the market expressed concerns over the valuations of technology stocks

The Japanese stock market experienced its largest decline in nearly six months, as a decrease in global risk appetite put pressure on technology stocks, while concerns grew that the optimism surrounding artificial intelligence had pushed the valuations of these stocks too high.

On Wednesday, the blue-chip Nikkei 225 index fell by as much as 4.7%, while the broader Topix index saw a decline of up to 3.3%. These were the largest intraday drops since April 11.

Market turbulence also affected the yen, as investors sought safe-haven assets, causing the yen to rise to its highest level in nearly a week. Government bond futures initially rose but dipped slightly after a weak 10-year bond auction during lunchtime.

"This is a moment of reckoning after we experienced a massive rally, as valuations begin to come into focus," said Anna Wu, cross-asset investment strategist at Van Eck. "The main reason for the sell-off is a reversal in sentiment, shifting from previous optimistic exuberance to a more rational 'let's let performance speak' attitude."

AI-related stocks became one of the hardest-hit sectors: SoftBank Group's stock price fell by as much as 14%, and chip equipment manufacturer Advantest saw a decline of over 10%. Despite the drop on Wednesday, SoftBank Group's stock price has still risen more than 140% year-to-date, benefiting from market optimism regarding its AI-related investments

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