Japanese Shares Drop on Tech Losses
Japan’s Nikkei 225 Index dropped 2.12% to close at 63,290 on Friday, ending a three-day winning streak as disappointing earnings from major technology companies heightened concerns over the sustainability of the AI trade. In after-hours trading, Amazon shares plunged around 7% after revealing a sharp increase in capital expenditures, while Intel tumbled 23% following a weaker-than-expected quarterly outlook and signs of slowing demand in the PC market. On the domestic front, investors awaited earnings reports from Kioxia Holdings and Tokyo Electron for further insight into AI-related demand, with their shares falling 7.1% and 5.2%, respectively. Other major technology stocks also suffered significant losses, including Advantest (-5.9%), SoftBank Group (-6%) and Lasertec (-8.8%). Meanwhile, the Bank of Japan maintained its policy rate at 1.25%, but signaled that underlying inflation has finally reached its 2% target, potentially paving the way for a rate hike in December.
Japan’s Nikkei 225 Index dropped 2.12% to close at 63,290 on Friday, ending a three-day winning streak as disappointing earnings from major technology companies heightened concerns over the sustainability of the AI trade. In after-hours trading, Amazon shares plunged around 7% after revealing a sharp increase in capital expenditures, while Intel tumbled 23% following a weaker-than-expected quarterly outlook and signs of slowing demand in the PC market. On the domestic front, investors awaited earnings reports from Kioxia Holdings and Tokyo Electron for further insight into AI-related demand, with their shares falling 7.1% and 5.2%, respectively.
Other major technology stocks also suffered significant losses, including Advantest (-5.9%), SoftBank Group (-6%) and Lasertec (-8.8%). Meanwhile, the Bank of Japan maintained its policy rate at 1.25%, but signaled that underlying inflation has finally reached its 2% target, potentially paving the way for a rate hike in December.