FX.co ★ Japan’s Nikkei Falls on Persistent AI Worries

The Nikkei 225 Index fell 0.4% to below 62,000 on Thursday, reversing earlier gains as technology stocks came under renewed selling pressure amid mounting concerns over the trajectory of artificial intelligence development. Sentiment toward the sector weakened further as investors grew more wary of potential tighter regulations on data-center investment following Democratic gains in the US midterm elections.

Among the notable laggards were Kioxia Holdings (-6%), Advantest (-9.2%), and Ibiden Co (-12.9%). At the same time, investors rotated into other areas of the market, particularly consumer and financial shares, boosting Fast Retailing (6%), Toyota Motor (5.8%), and Mitsubishi UFJ (3.2%).

The election outcome also contributed to a sharp slide in oil prices, amid hopes for progress toward resolving the conflict in the Middle East. Separately, minutes from the Bank of Japan’s September meeting reinforced expectations that the central bank is leaning toward further interest rate hikes.