Japan's Nikkei slumps 3% as tech stocks tumble on AI worries
EWJ•Japan's Nikkei fell as much as 3% on Friday, led by chip-related stocks, as concerns grew over the sustainability of spending on AI. It was down 2.8% as of 2003 GMT, while the Topix fell 1.3%.
1. Chip stocks lead decline
The Nikkei tracked overnight losses on Wall Street, with late earnings from Amazon.com and Intel adding pressure after reports of heavy cash burn. Advantest fell 9.1% and Tokyo Electron dropped 5.6%; Ibiden lost 15.2%, Lasertec fell 13.8% and SoftBank Group declined 6.7%.
2. Mixed weekly performance
The Nikkei remained up 0.2% for the week, while the Topix was set to lose 0.4%. Among Nikkei components, 123 fell, 100 rose and two were unchanged. Konami gained 15.3%, while Oriental Land rose 6.6%.
3. Investors watch BOJ
Falling crude oil prices, supported by optimism over Middle East peace talks, helped support Japanese stocks. The Bank of Japan was due to announce its policy decision on Friday and was widely expected to leave interest rates unchanged, with investors watching for signals about a possible December rate hike.
