Japan’s Nikkei 225 Index fell 2.65% to 62,908 on Thursday, closing at its lowest level in nearly three months, as renewed selling hit technology and artificial intelligence shares. Investors remained skeptical about whether massive AI-related capital expenditure will deliver adequate returns, a concern that is particularly acute given the central role Japanese firms play in building out global AI infrastructure.
Sentiment was further weighed down by rising crude prices following deadly attacks on a Saudi oil facility, which heightened geopolitical tensions in the Middle East and stoked inflation worries. Japan is especially exposed to such disruptions because it relies heavily on oil imports from the region.
Technology names led the decline: Kioxia Holdings tumbled 6.8%, Advantest and Taiyo Yuden each lost 6%, SoftBank Group dropped 6.9%, and Tokyo Electron slid 7%.
