Japan's Nikkei 225 drops up to 2% amid strong CPI and global tech rout

Japan's Nikkei 225 dropped up to 2% on Friday, approaching a 4% weekly decline and touching three-month lows. The downturn followed hotter-than-expected September consumer price index data, which revealed that core inflation rose above the Bank of Japan's 2% annual target for the first time since December 2025. Sentiment deteriorated further following an overnight slide on Wall Street, where the Nasdaq 100 dropped 2.9% amid an artificial intelligence sell-off. As investors sought safe havens, benchmark 10-year Japanese government bond yields fell 9 basis points to 2.77% and the yen reached ¥156.3 per dollar.