Japan’s Nikkei Falls on Persistent AI Worries

The Nikkei 225 Index declined 0.4% to below 62,000 on Thursday, surrendering earlier gains as technology shares remained under pressure amid growing concerns over artificial intelligence development. Investors grew increasingly cautious about the possibility of tighter regulations on data-center investments following Democratic victories in the US midterm elections. Among the biggest decliners were Kioxia Holdings (-6%), Advantest (-9.2%) and Ibiden Co (-12.9%). Meanwhile, investors shifted toward other sectors, particularly consumer and financial stocks, lifting shares of Fast Retailing (6%), Toyota Motor (5.8%) and Mitsubishi UFJ (3.2%). The election outcome also triggered a sharp drop in oil prices on expectations of a potential resolution to the Middle East conflict. Elsewhere, minutes from the Bank of Japan's September meeting further strengthened expectations of additional interest rate increases.