๐ฏ๐ต GRANDE: The Nikkei 225 enters technical correction
Japan has just confirmed what the markets had been anticipating: the Nikkei 225 closed more than 10% below its all-time high from June 25, officially entering technical correction territory.
๐ Fridayโs session was brutal: the index fell 4% to 64,141 points, marking its worst week since April 2025.
๐ป The broader Topix was not spared either: it slid 2.7% to 3,919 points.
โ๏ธ The cause? A volatile combination:
* Doubts about whether the global semiconductor and AI rally was overvalued
* Massive selloffs in tech names: Kioxia (-16%), Tokyo Electron (-8%), SoftBank (-9%), Advantest (-7%)
* Rising geopolitical tension from the conflict between the U.S. and Iran, which pushed oil prices higher and reignited inflation fears
๐ The index had been coming off an extraordinary rally, moving from ~44,000 points at the end of 2025 to a peak near 73,000 in June 2026โso, despite the correction, the underlying uptrend has not been technically broken yet.
๐ Another sign that the AI party in global markets is starting to show cracks. The question now is whether this is a healthy pause... or the start of something bigger.
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