Japanese Shares Slide as Tech Selloff Resumes

Japan’s Nikkei 225 Index dropped 2.65% to 62,908 on Thursday, closing at its lowest level in nearly three months as renewed selling pressure hit technology and artificial intelligence stocks. Investors continued to question whether massive AI investments would generate sufficient returns, particularly as Japanese companies play a significant role in the global AI infrastructure expansion. Sentiment was further dampened by rising oil prices following deadly attacks on a Saudi oil field, intensifying geopolitical tensions in the Middle East and adding to inflationary concerns. Japan remains especially vulnerable to regional disruptions due to its heavy reliance on oil imports from the Middle East. Technology stocks recorded notable losses, with Kioxia Holdings falling 6.8%, Advantest and Taiyo Yuden each declining 6%, SoftBank Group dropping 6.9%, and Tokyo Electron sliding 7%.