Nikkei 225 falls 1.82% to 67,777, extending its decline to a fourth session
Updated
Summary
The Nikkei 225 fell 1.82% to close at 67,777 on Tuesday, extending its decline to a fourth consecutive session. The drop followed an overnight tech-led selloff on Wall Street.
The downturn reflected growing concerns about the AI trade, as investors reassessed capital-spending prospects amid rising borrowing costs.
Why it matters
Technology and AI-related shares posted steep losses. Kioxia Holdings fell 13.3%, SoftBank Group dropped 8.5%, Tokyo Electron declined 7.2%, Taiyo Yuden lost 4.9%, and Advantest fell 2.9%.
Market sentiment also faced pressure from competition concerns after China’s ChangXin Memory Technologies reported progress in developing a new chip architecture.
Separately, Broadcom CEO Hock Tan said the AI boom had attracted investors whose strategies resembled gambling, while Ray Dalio called AI a “classic bubble” nearing a potential burst amid rising interest rates and investors seeking to convert wealth into cash.