Japanese markets extended their slide on Tuesday as the heavy sell-off in technology stocks headed into a second day, driven in part by the overnight plunge in chipmaker Nvidia’s shares.
Nvidia lost $589bn of market value on Monday in a historic fall, as Wall Street and in Silicon Valley panicked over a perceived threat from Chinese start-up DeepSeek to the continued dominance of the US in AI and the need to invest hundreds of billions of dollars in underlying infrastructure.
Japan’s tech-heavy Nikkei 225 fell by as much as 1.7 per cent on Tuesday morning in Tokyo, before recovering to a decline of 1.1 per cent. The broader Topix, which has lower weightings for Japan’s tech exporters, rose 0.2 per cent.