FX.co ★ Japan’s Nikkei Falls on Tech Losses

Japan’s Nikkei 225 fell 0.62% to close at 64,916 on Monday, extending last week’s decline as technology stocks remained under pressure amid persistent concerns about the AI trade. Investors are increasingly questioning whether massive capital outlays on AI-related infrastructure will generate sufficient returns, particularly given Japanese firms’ substantial exposure to the global AI boom.

That said, selling pressure moderated as US stock futures rebounded sharply following steep losses on Friday. Notable decliners included Taiyo Yuden (-4.9%), SoftBank Group (-2%), Lasertec (-3.9%), Ibiden (-2.6%), and Tokyo Electron (-2.6%). Kioxia also stayed under strain after reports indicated that outstanding leveraged long positions in its shares reached roughly ¥920 billion last week, the highest level among companies listed on the Tokyo Stock Exchange.

Looking ahead, investors are awaiting forthcoming trade and inflation data for additional signals on the strength and trajectory of Japan’s economy.