Kioxia Holdings slumped close to 9.5%, making it one of the day's worst performers as the semiconductor sector faced broad selling pressure across Japanese markets.
Tokyo Electron fell nearly 5% as investors continued to rotate out of semiconductor names, mirroring overnight losses across the global technology sector.
SoftBank Group tumbled more than 7% after global investors reduced exposure to AI-related companies, with renewed concerns over capital expenditure weighing heavily on the stock.
Japan's Nikkei 225 plunged more than 2.7% as renewed concerns over rising AI infrastructure spending triggered a broad sell-off in technology stocks, pushing the index deeper into correction territory.
Otsuka Holdings emerged among the day's strongest performers after investors favored healthcare stocks amid the sharp decline in Japanese technology shares.
Central Japan Railway outperformed the broader market, benefiting from renewed investor demand for stable domestic transportation and infrastructure companies
The broader TOPIX index also closed lower, reflecting widespread weakness across Japanese equities despite a handful of defensive sectors posting gains.
More than half of all companies listed on the Tokyo Stock Exchange's Prime Market finished lower, highlighting the broad-based nature of Friday's sell-off.
The Nikkei recorded one of its steepest declines this month as investors reacted to weakness in U.S. technology stocks and deteriorating global market sentiment.
Japanese semiconductor stocks extended losses after Alphabet's increased AI spending plans reignited fears that soaring capital expenditures could weigh on future profitability across the sector.
Despite Friday's sharp decline, analysts noted that Japan's market continues to be supported by expectations of improving corporate earnings later in the reporting season, although near-term volatility is likely to remain elevated.
Japanese stocks tracked global market weakness as investors balanced corporate earnings, geopolitical risks, and concerns over future AI-related spending.
The Nikkei's July losses deepened as persistent selling in heavyweight technology stocks overshadowed resilience in consumer and transportation shares.
KOMEDA Holdings drew investor attention after reporting solid earnings, with analysts noting that underlying business fundamentals remain stronger than the market reaction suggests.
Global concerns over escalating AI investment costs continued to ripple through Japan's equity market, with investors reassessing valuations of high-growth technology companies.
American crypto firms are accelerating expansion plans after regulators signaled a more supportive stance toward digital assets, boosting optimism across exchanges, miners, and blockchain companies.
