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Nikkei 225 Plunges Over 2,000 Points as Chip Stocks Tumble
5 Nov
Summary
- Nikkei 225 index fell below 50,000 for the first time since October 2025
- Semiconductor-related stocks faced heavy selling pressure
- Decline driven by overnight drop in U.S. high-tech shares
On November 5, 2025, Japan's benchmark Nikkei 225 stock index experienced a significant decline, briefly tumbling more than 2,000 points in the morning trading session. The index fell below the 50,000 level for the first time since October 27, 2025, closing at 49,441.52, a 3.95% drop from the previous day.
The sharp sell-off was primarily driven by heavy selling pressure on semiconductor-related stocks, which faced the brunt of the market downturn. This decline in chip-related shares was largely attributed to the overnight fall in U.S. high-tech stocks, as investors grew increasingly cautious about the recent surge in artificial intelligence-related equities.
The plunge in the Nikkei 225 index reflects the broader market volatility and uncertainty surrounding the technology sector, particularly the semiconductor industry, which plays a crucial role in Japan's economy. Investors will be closely monitoring the situation in the coming days to gauge the potential impact on the Japanese stock market and the broader economic landscape.
