The Nikkei briefly fell below ¥63,000 in Tokyo trading at the start of the week as concerns over slower AI investment spread. Selling spread across AI-related stocks following comments from U.S. AI companies.
The Nikkei Stock Average continued to decline in Tokyo trading at the start of the week, briefly falling below ¥63,000 during trading. It ended down ¥1,031.82 from the previous day at ¥62,979.52, its lowest level in about a month and a half. Selling orders spread across AI-related stocks, with concerns over slower AI investment weighing on the market.
As of 10 a.m., TOPIX was modestly higher at 4,043.84, up 15.54 points from the previous close. Executives at U.S. AI companies said they believed investment should be slowed, prompting a reaction in stocks including SBG, an investor in OpenAI.
Regarding the outlook for AI development, Dario Amodei, CEO, indicated on his website that he favored slowing development, while Sam Altman, CEO, also said he was considering a slowdown. SoftBank Group fell more than 10% at one point in response, while Advantest and Tokyo Electron, major semiconductor manufacturing equipment makers, were also sold.
Against the backdrop of market volatility, investors are watching developments in AI-related stocks and major AI companies. Further market reactions may be expected in response to future investment activity and companies' announcements of their AI strategies.