Japanese stocks plunge as AI deleveraging hits market; Kioxia down 16%

Japanese stocks plunged today as AI-linked deleveraging swept the market, with Kioxia tumbling 16 percent in Tokyo trading, Nikkei Asia reports. The rout highlights how quickly crowded trades around chips and data center demand can unwind, threatening a pillar of this year’s rally in Tokyo and denting risk appetite. Kioxia, a major memory supplier, has been seen as a proxy for AI infrastructure appetite and the health of semiconductor demand more broadly.

According to Nikkei Asia, selling pressure broadened across semiconductor and hardware names as leveraged positions were cut, deepening declines in the broader market, and the move comes amid heightened volatility in global tech shares. Investors will watch closing levels, any trading curbs, and commentary from Kioxia or brokers on the extent of forced unwinds. [Developing. This article will be updated.]