Japan's Nikkei slides as AI stocks tumble, geopolitical risks weigh
EWJ•Japan's Nikkei 225 fell 2.64% to 67,206.79 in early trade as AI-related stocks sold off and geopolitical tensions weighed on sentiment. The Topix slipped 0.56%.
1. Stocks fall in Tokyo
The Nikkei 225 fell 2.64% to 67,206.79 in early trade on Tuesday, poised for a fourth consecutive session of declines. The broader Topix slipped 0.56% to 4,081.76.
2. AI and geopolitical concerns
The selloff in AI-related shares followed weakness in U.S. chip stocks, while concerns about the Federal Reserve's next policy move and tensions in the Middle East and Ukraine kept investors cautious. Japan's wholesale prices rose 6.8% year-on-year in September, and yen-based import prices surged 24.5%.
3. Mixed sector moves
Nonferrous metals led Topix industry-group declines, down 4.79%, while marine transportation shares gained 3.35%. Kioxia Holdings fell 13.02%, the largest decline in the Nikkei 225, while Kawasaki Kisen Kaisha rose 4.07%, the index's biggest percentage gain.
