The Nikkei 225 Index fell 2.2% to below 64,000 on Monday, marking a one-month low as technology shares extended their slide under growing pressure on the artificial intelligence (AI) trade. Market participants are increasingly questioning whether the heavy global investment in AI infrastructure will deliver adequate returns, a concern that is particularly acute for Japan given the deep involvement of its firms in the worldwide AI build-out.
Notable decliners included Kioxia (-1.6%), Advantest (-4%), SoftBank Group (-5.3%), Lasertec (-5.2%), and Taiyo Yuden (-6.2%). Kioxia shares faced additional downside pressure after data showed that outstanding leveraged long positions in the stock climbed to about ¥920 billion last week, the highest among companies listed on the Tokyo Stock Exchange.
Looking ahead, investors are shifting their focus to upcoming trade and inflation releases for further insight into the underlying strength of Japan’s economy.
