Japan's Nikkei suffers 3rd largest single-day point loss on AI, chip sell-off

TOKYO, Oct. 15 (Xinhua) -- Tokyo stocks ended sharply lower on Thursday, with the benchmark Nikkei stock index suffering its third-largest single-day point drop, shedding over 3,300 points, as selling spread across a broad range of stocks related to the artificial intelligence (AI) and semiconductor industries amid uncertainty over their future prospects.

The 225-issue Nikkei Stock Average ended down 3,318.34 points, or 4.90 percent, from Wednesday at 64,425.95.

The broader Topix index, meanwhile, finished 97.44 points, or 2.38 percent, lower at 3,999.34.

On the top-tier Prime Market, nonferrous metal, electric appliance, and glass and ceramics product issues were among the notable decliners.

The selling was triggered by a stronger-than-expected U.S. consumer price index for September, which revived bets on further U.S. Federal Reserve rate hikes.

Market sentiment soured further after corporate bonds issued by a major U.S. data center operator plunged, fueling a sell-off in AI- and chip-related shares and pushing investors into risk-off mode, analysts said.

The Nikkei index briefly plunged more than 5 percent during the session and has now shed more than 6,200 points over a six-trading-day losing streak.

Analysts said the dive has erased some of the gains made over the past few months, but noted that the correction has made valuations more attractive, which could draw bargain hunters and help the market rebound.