Japan’s Nikkei index fell on Thursday, as chip stocks dropped and investors grew more cautious about the continuation of AI spending.
The Nikkei dropped 2.7% to close at 62,907.84 points, wiping out the previous session’s 0.9% gain. The broader Topix index also fell 1.1%, according to Reuters.
Chip stocks lead the losses
Chip companies led the decline, with Advantest shares losing 6% and Tokyo Electron falling 7%. Fujikura, which makes data center cables, dropped 6.2%, while SoftBank shares fell 6.9%.
These losses came amid concerns over Chinese demand for chip manufacturing equipment. Analysts believe that companies rushing to buy equipment ahead of expected tighter regulations could be followed by a slowdown in demand.
In addition, previous gains prompted some investors to take profits. Markets are closely watching whether companies can sustain AI-related capital spending through 2027.
Gains for cybersecurity firms
In contrast, Trend Micro shares rose 8.7%, posting the biggest gain on the Nikkei. The rise came after the disclosure of serious security vulnerabilities in the PHP programming language.
Shift, an IT services company, also jumped 8.6%, while technology consulting firm Baycurrent rose 3.8%. These moves reflected mixed performance among tech companies, despite the broad pressure seen across the Japanese market.
