Japan's Nikkei 225 fell below the key 60,000 level, extending losses to about
6.5% as investors unwind AI-related positions, leaving the index exposed to
further downside. The Nikkei is roughly 20% off its late-June peak, raising the
risk of a technical bear market. The divergence between the tech-heavy Nikkei
and the broader TOPIX has widened to its largest in decades. U.S. chip stocks
have accelerated their sell-off after the U.S. midterms as markets speculate
Democrats may impose restrictions on the AI sector, prompting broader tech
selling.
