Nikkei falls to 5-month low after Nvidia losses

Japan’s Nikkei closed at a 5-month low on Tuesday as chip-related stocks tracked sharp overnight declines in Nvidia, while Advantest plunged about 9%.

The Nikkei fell below 37,000 for the first time since Sept. 19, hitting a low of 36,840.12 during trading.

The index ended the session down 2.88% at 37,155.5, its lowest close since Sept. 19, in its biggest daily decline since Sept. 30, according to Reuters.

The broader Topix index lost 1.98% to 2,682.09.

The S&P 500 and Nasdaq closed sharply lower overnight, dragged down by an 8.5% loss in chipmaker Nvidia after its quarterly report failed to spark an AI rally on Wall Street, while investors focused on data suggesting the U.S. economy is slowing.