FX.co ★ Japanese Shares Waver on Mixed Sector Performance

The Nikkei 225 Index was little changed on Monday, trading near the flatline as gains in industrial and consumer stocks were offset by weakness in technology names. The session underscored an ongoing rotation out of tech and into other sectors amid growing doubts about the durability of the artificial intelligence rally. Investors are increasingly concerned about potential overcapacity and intensifying competition among AI providers, particularly from China.

Losses in technology and AI-related shares were led by Kioxia Holdings (-3.6%), Taiyo Yuden (-7.3%) and SoftBank Group (-4.5%). In contrast, Mitsubishi Heavy Industries (+5.4%), Shin-Etsu Chemical (+2.7%) and Fast Retailing (+1.7%) recorded solid advances.

Market participants are now looking ahead to a series of key economic releases this week, including household spending figures, producer price index (PPI) data and machine tool orders.