Growing skepticism over AI investment sent the Tokyo market sharply lower, led by semiconductor and AI-related stocks. The Nikkei temporarily fell 3%, then was down 2.8% in the afternoon, while TOPIX was down 1.3%. The BOJ left its policy rate unchanged at 1.25%.
Japanese stocks fell sharply on Friday, led by selling in semiconductor and AI-related names. Disappointing earnings from major U.S. tech companies and growing doubts about the profitability of AI infrastructure investment triggered selling across Asian markets.
The Nikkei temporarily fell 3% in the Tokyo market before trading down 2.8% late in the afternoon. TOPIX fell 1.3%. On a weekly basis, the Nikkei was expected to rise approximately 0.2%, while TOPIX was expected to fall 0.4%.
Declines were pronounced among semiconductor manufacturing equipment and AI-related stocks, with Advantest down 9.1%, Tokyo Electron down 5.6%, Ibiden down 15.2%, Lasertec down 13.8% and SoftBank Group down 6.7%.
The BOJ left its policy rate unchanged at 1.25% on Friday. Data also showed that core CPI rose 2.6% year on year, contributing to growing expectations of an additional rate hike. Meanwhile, the BOJ indicated a policy of increasing sales of its ETF holdings.