Japanese Stocks Slide Amid Tech Selloff

Japanese Stocks Slide Amid Tech Selloff

The Nikkei 225 Index fell 2.2% to below 64,000 on Monday, hitting a one-month low as technology shares extended their decline amid mounting pressure on the artificial intelligence trade.

Investors are increasingly questioning whether massive spending on AI infrastructure will generate sufficient returns, particularly as Japanese firms remain deeply involved in the global AI expansion.

Major decliners included Kioxia (-1.6%), Advantest (-4%), SoftBank Group (-5.3%), Lasertec (-5.2%), and Taiyo Yuden (-6.2%).

Kioxia shares also faced additional downside risks after reports showed that outstanding leveraged long positions in the stock reached around ¥920 billion last week, the highest among companies listed on the Tokyo Stock Exchange.

Meanwhile, investors are turning their attention to upcoming trade and inflation data for further clues about the health of Japan’s economy.