Japanese Shares Decline Amid Tech and AI Rout

The Nikkei 225 Index dropped 1.36% to close at 67,470, while the broader Topix Index fell 1.11% to 3,952 on Thursday, as Japanese equities pulled back from record highs amid a global selloff in technology and artificial intelligence stocks. Local markets tracked losses in US futures after a weak outlook from US chipmaker Broadcom dampened sentiment across the sector. Meanwhile, renewed tensions between the US and Iran reduced hopes for a peace agreement and pushed energy prices higher, keeping inflation and interest-rate concerns at the forefront. Among individual stocks, SoftBank Group tumbled 11.3% due to its significant exposure to AI-related investments. Other major decliners included Kioxia Holdings (-1.5%), Fujikura (-3.9%), Murata Manufacturing (-5%), Taiyo Yuden (-3.9%), and Furukawa Electric (-3.8%).

The Nikkei 225 Index decreased 1030 points or 1.51 percent on Thursday to close at 67372 points. The decline was led by Softbank (-10.92%), Toppan (-6.37%) and Dowa (-6.05%).

The Nikkei 225 Index fell 1.5% toward 67,000, while the broader Topix Index declined 0.8% to 3,964 on Thursday, as Japanese equities retreated from record levels amid renewed tensions between the US and Iran. The latest escalation undermined hopes for a peace agreement and drove energy prices higher, keeping inflation and interest-rate concerns in focus. Domestic stocks also followed US futures lower after a weak outlook from US chipmaker Broadcom weighed on the global technology sector. Meanwhile, billionaire investor Ray Dalio cautioned that the rapidly expanding artificial intelligence market is exhibiting bubble-like characteristics that could eventually unwind. Technology and AI-related shares led losses in Japan, including SoftBank Group (-7.8%), Kioxia Holdings (-1%), Fujikura (-6.1%), Murata Manufacturing (-2.9%), and Furukawa Electric (-4.4%).