Nikkei 225 falls 5% as global tech rout deepens

The sharp fall in Tokyo stocks is part of a synchronized global retreat from technology shares. The sell-off started in the U.S., where the S&P 500 fell 1.11% and the Nasdaq composite declined 1.88% on Wednesday after a higher-than-expected inflation reading of 3.7% in September stoked concerns over the economy and high tech valuations. The Philadelphia Semiconductor Index dropped 4.3%, and weakness quickly spread to Asia, with South Korea's Kospi falling about 8%.

The Japanese market opened weak and declined steadily, with the Nikkei 225 hitting its low for the day at 64,092.74, down 5.39%. Advantest, SoftBank Group, Kioxia and Tokyo Electron all posted steep losses. Despite the decline, the index is still up 35% over the past year and remains more than 10% below its all-time high of 72,831.73 set in June, a sign that the broader uptrend may not be fully broken. Bond markets also reflected the shift in sentiment, as the 10-year JGB yield fell to 2.93%, its lowest level in about a month, showing that investors moved toward safer assets.