Japan's Nikkei slumps up to 3% as tech stocks tumble on AI worries
EWJ•Japan's Nikkei fell 2.1% to 63,290.11 on Friday after dropping as much as 3%, as chip stocks slid on concerns about the sustainability and profitability of AI spending. The broader Topix lost 1%.
1. Chip stocks lead declines
The Nikkei's decline was led by Advantest, down 5.9%, and Tokyo Electron, down 5.2%. Ibiden fell 15.2%, Lasertec dropped 8.8% and SoftBank Group lost 6%. The moves followed overnight Wall Street losses and late earnings from Amazon.com and Intel that showed substantial cash burns.
2. Weekly performance mixed
The Nikkei gained 1% for the week, while the Topix was flat. The Bank of Japan held interest rates steady and said it would accelerate sales of exchange-traded funds from January; the market was largely unmoved. Falling crude oil prices, supported by optimism over Middle East peace talks, provided support to Japanese stocks.
