Japan's Nikkei slides as AI capex caution weighs on chip shares
EWJ•Japan's Nikkei fell 2.7% to 62,907.84 on Thursday as chip shares slumped amid caution about continued AI-related spending. The broader Topix slipped 1.1%.
1. Nikkei reverses gains
The tech-heavy Nikkei fell 2.7% to close at 62,907.84, reversing Wednesday's 0.9% gain. The broader Topix slipped 1.1% after rising 0.9% the previous day.
2. Chip shares lead decline
Advantest dropped 6% and Tokyo Electron fell 7%, while data-centre cable maker Fujikura lost 6.2% and SoftBank Group slid 6.9%. Investors were cautious about whether AI capital spending would continue into 2027, an equities strategist said.
3. Some tech shares advance
Trend Micro jumped 8.7% after critical vulnerabilities in PHP prompted several European governments to take their websites offline to protect systems. IT services provider SHIFT rose 8.6%, and IT consultancy BayCurrent added 3.8%.
