---
title: JAPANESE STOCKS JUST ENTERED A TECHNICAL CORRECTION:
description: "The Nikkei 225 dropped -4% on Friday, now more than -10% below its June 25 peak, marking a technical correction and its worst weekly loss since April 2025.\n\nThe broader Topix fell -2.7%, with Tokyo Electron alone contributing the most to the decline after sliding -8.2%.\n\nMarket breadth was weak, with 810 stocks falling versus 788 rising and 39 unchanged.\n\nThis comes as investors grow increasingly concerned that AI-related capex is outpacing returns, after Taiwan Semiconductor, $TSM, fell despite raising both its spending and revenue targets, mirroring Samsung's selloff earlier this month despite beating earnings estimates.\n\nKioxia Holdings led the losses, plunging -16%, its biggest one-day drop since November 2025. \n\nIts market capitalization has now been cut in half in just one month after briefly becoming Japan's most valuable company.\n\nAI euphoria across semiconductor sector is unwinding rapidly.\n\nSource: Global Markets Investor"
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [JAPANESE STOCKS JUST ENTERED A TECHNICAL CORRECTION:](https://blog.syzgroup.com/syz-the-moment/japanese-stocks-just-entered-a-technical-correction)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Jul 17, 2026, 2:55:45 PM

[View full post](https://blog.syzgroup.com/syz-the-moment/japanese-stocks-just-entered-a-technical-correction)

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