Japan’s Nikkei Slumps on Hot US Inflation
The Nikkei 225 Index fell more than 3% toward the 65,000 level on Thursday, extending its losing streak to six consecutive sessions and reaching a two-week low as stronger-than-expected US inflation fueled concerns over higher interest rates. Japanese equities also followed an overnight technology-led selloff on Wall Street, as rising borrowing costs threatened the sector’s credit outlook amid substantial investments in artificial intelligence. AI-related stocks led the declines in Japan, with Kioxia Holdings falling 9.1%, Advantest dropping 7.4%, Lasertec losing 8.8%, SoftBank Group sliding 7.8% and Taiyo Yuden declining 4.5%. Banking stocks also weakened, including Mitsubishi UFJ and Sumitomo Mitsui, both down 1.1%, while Mizuho Financial fell 1.8%. Meanwhile, Japanese data showed that core machinery orders, a key indicator of capital investment, increased more than expected in August.
The Nikkei 225 Index fell more than 3% toward the 65,000 level on Thursday, extending its losing streak to six consecutive sessions and reaching a two-week low as stronger-than-expected US inflation fueled concerns over higher interest rates. Japanese equities also followed an overnight technology-led selloff on Wall Street, as rising borrowing costs threatened the sector’s credit outlook amid substantial investments in artificial intelligence. 5%. 8%.
Meanwhile, Japanese data showed that core machinery orders, a key indicator of capital investment, increased more than expected in August.