FX.co ★ Japanese Shares Fall for Second Session

The Nikkei 225 Index fell 1.5% to below 67,800 on Friday, extending losses for a second straight session as technology stocks remained under pressure amid mounting concern that the artificial intelligence-driven rally has run ahead of fundamentals. Investors are increasingly questioning whether heavy capital outlays and intensifying competition in the AI sector can justify lofty valuations and translate into sustainable earnings growth. Japanese companies linked to the global buildout of AI infrastructure suffered another sharp selloff, including Kioxia Holdings (-4.6%), Taiyo Yuden (-8.5%), Tokyo Electron (-3.4%), Murata Manufacturing (-5.2%), and Fujikura (-5%). Broader domestic equities also weakened as the yen strengthened nearly 1% on Thursday, driven by speculation that Japanese authorities could step in to support the currency at any time.