FX.co ★ Japanese Shares Fall on AI Safety Concerns

The Nikkei 225 Index fell 0.81% to close at 63,493 on Monday, marking a six-week low as it tracked declines in US stock futures amid mounting concerns over safety risks in artificial intelligence development. Over the weekend, Anthropic CEO Dario Amodei called on AI firms to slow the rollout of their most advanced models, citing safety issues.

Sentiment was further pressured by a sharp rise in oil prices after Saudi Arabia shut down the key East–West pipeline, a critical route that offers an alternative to shipments through the Strait of Hormuz. The surge in energy costs strengthened expectations for tighter monetary policy, with both the US Federal Reserve and the Bank of Japan widely anticipated to raise interest rates this week.

Technology and AI-related shares led the downturn, with Kioxia Holdings (-6.4%), Advantest (-2%) and Taiyo Yuden (-5.4%) among the notable laggards. In corporate news, SoftBank Group slumped 10.7% after OpenAI CEO Sam Altman said the ChatGPT maker would not pursue an initial public offering this year.