The Nikkei 225 Index slipped 0.4% to around 64,350 on Thursday, paring some of the previous session’s gains as the recent technology-led rally—driven by robust earnings and renewed optimism over artificial intelligence—began to lose momentum. Japanese equities also mirrored weakness in US stock futures after major Wall Street firms reported mixed results, prompting investors to reassess whether large-scale AI investments will ultimately translate into sufficient revenue.
Adding to the cautious mood, oil prices climbed following a deadly attack on a Saudi oil facility, heightening fears of supply disruptions and renewed inflationary pressures. Japan is particularly vulnerable to instability in the Middle East because of its heavy reliance on oil imports from the region.
Technology shares were broadly weaker, with notable declines in Kioxia Holdings (-0.9%), Tokyo Electron (-3.7%), SoftBank Group (-0.7%), Ibiden Co (-2.6%) and Fujikura (-2.8%).
