The Nikkei 225 Index fell 0.3% on Monday, nearing the 63,000 mark, as technology stocks continued to struggle. Concerns over the long-term viability of the artificial intelligence sector weighed heavily on investor sentiment. The decline followed a similar downturn on Wall Street last Friday, where Intel saw its worst single-day drop in over four decades, plunging nearly 30%.
In Japan, tech-related stocks took a hit due to weak earnings, with Kioxia tumbling 13%, Ibiden Co dropping 6%, and Screen Holdings losing 5.8%. The slump extended to major banking stocks, including Mitsubishi UFJ (-2.3%), Sumitomo Mitsui (-2.6%), and Mizuho Financial (-2.5%), which also posted significant losses.
Investors are now focusing on Japan’s upcoming wage data, which could provide further insights into the Bank of Japan’s monetary policy. While the BOJ kept interest rates unchanged last week, it noted that underlying inflation had finally met its 2% target.