The Nikkei 225 Index Closes 0.07% Lower

The Nikkei 225 Index ended virtually flat at 69,031 on Friday, recovering most of its earlier losses after reports indicated that OpenAI expects annualized revenue to reach or exceed $70 billion by year-end. The news eased concerns triggered by earlier reports that the company’s annualized revenue was $20 billion below previously indicated levels as of September. Investors remain focused on whether AI-related revenues can justify the sector’s substantial investment spending, particularly as Japanese companies play a key role in the global AI infrastructure buildout. Equities also drew support from easing bond yields and retreating oil prices after President Donald Trump said the US was engaged in “productive discussions” with Iran and would refrain from attacking the country before the midterm elections. However, technology and AI-related stocks remained under pressure, with Kioxia Holdings falling 2.2%, SoftBank Group declining 3.9% and Murata Manufacturing losing 3.6%.

The Nikkei 225 Index decreased 48 points or 0.07 percent on Friday to close at 68994 points. The decline was led by Nidec (-7.15%), Fast Retailing (-4.06%) and Murata Manufacturing (-4.03%). On the upside, the strongest performers were Screen Holdings (4.59%), Trend Micro (4.19%) and Japan Tobacco (3.99%).

The Nikkei 225 Index dropped 1% to around 68,300 on Friday, extending losses for a third consecutive session and following an overnight selloff in US technology stocks as concerns over OpenAI’s revenue outlook weighed on the broader artificial intelligence sector. Reports suggested that OpenAI’s annualized revenue stood at $50 billion at the end of September, below the widely reported $68 billion figure last month. Investors are increasingly focused on whether AI-related revenue can justify the sector’s substantial investment spending, particularly as Japanese firms play a significant role in developing global AI infrastructure. Among the biggest decliners were Advantest (-2.3%), Kioxia Holdings (-4.3%), SoftBank Group (-7.1%), Fujikura (-3.5%) and Murata Manufacturing (-3.6%). Meanwhile, data showed that Japan’s personal spending declined for a ninth consecutive month in August, as persistent inflation continued to weigh on consumer demand.