Japanese Shares Struggle as AI Concerns Linger
Japan’s Nikkei 225 Index fell 0.3% to below 62,500 on Monday, extending losses from last week amid mounting concerns about the sustainability of massive artificial intelligence investments. Investors also awaited earnings reports from megacap tech names this week that could offer fresh clues on the AI trade. Meanwhile, markets braced for upcoming monetary policy decisions, with central banks in the US, Japan and the Eurozone widely expected to keep interest rates unchanged before potentially raising them later this year. On the geopolitical front, investors remained cautious over the possibility of renewed US strikes against Iran following next week’s midterm elections, as well as potential retaliation from Tehran against US allies in the region. Japanese technology stocks continued to face selling pressure, with Kioxia Holdings falling 3.5%, Advantest declining 2.6%, Disco Corp dropping 2.3%, Tokyo Electron losing 3.1% and Ibiden Co sliding 3%.
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Japan’s Nikkei 225 Index fell 0.3% to below 62,500 on Monday, extending losses from last week amid mounting concerns about the sustainability of massive artificial intelligence investments. Investors also awaited earnings reports from megacap tech names this week that could offer fresh clues on the AI trade. Meanwhile, markets braced for upcoming monetary policy decisions, with central banks in the US, Japan and the Eurozone widely expected to keep interest rates unchanged before potentially raising them later this year.
On the geopolitical front, investors remained cautious over the possibility of renewed US strikes against Iran following next week’s midterm elections, as well as potential retaliation from Tehran against US allies in the region. Japanese technology stocks continued to face selling pressure, with Kioxia Holdings falling 3.5%, Advantest declining 2.6%, Disco Corp dropping 2.3%, Tokyo Electron losing 3.1% and Ibiden Co sliding 3%.