The Nikkei 225 Index fell 0.3% toward the 63,000 mark on Monday, extending losses from the previous session as technology stocks stayed under pressure amid mounting doubts about the durability of the artificial intelligence rally. Japanese equities also tracked Friday’s selloff on Wall Street, where Intel tumbled nearly 30%, its steepest one-day decline in more than forty years.
At home, weaker-than-expected technology earnings weighed on AI-related names, with Kioxia down 13%, Ibiden Co off 6%, and Screen Holdings losing 5.8%. Major banks also retreated sharply, including Mitsubishi UFJ (-2.3%), Sumitomo Mitsui (-2.6%), and Mizuho Financial (-2.5%).
Investors are now focused on Japan’s wage data due this week for further clues on the Bank of Japan’s policy path. Last week, the BOJ kept interest rates unchanged but signaled that underlying inflation has finally reached its 2% target.
