The Nikkei 225 experienced a significant downturn, falling 1.21% to close at 56,942, mirroring losses on Wall Street and driven by concerns surrounding the sustainability of AI capital expenditures. The broader Topix also declined, retreating from record highs. Despite this pullback, both benchmark indexes managed to end the week with gains, fueled by optimism surrounding Prime Minister Takaichi’s policy agenda.
- The Nikkei 225 fell 1.21% to close at 56,942.
- The broader Topix declined 1.63% to 3,819.
- Losses followed declines on Wall Street amid AI concerns.
- SoftBank Group slumped nearly 9% despite returning to quarterly profit.
- Recruit Holdings and Hitachi dropped 9.5% and 6.6%, respectively.
- Kioxia Holdings surged 7.9% after strong quarterly results.
- Benchmark indexes ended the week with gains overall.
- Optimism surrounding Prime Minister Takaichi’s policy agenda supported domestic growth.
The asset faced downward pressure due to broader market anxieties, specifically related to investments in artificial intelligence. While some companies linked to the AI sector experienced considerable losses, others, particularly those benefiting from increased demand related to AI, saw gains. Despite this recent dip, overall market sentiment remains positive, buoyed by expectations of supportive government policies that may foster economic growth.