The Nikkei 225 was reported to be heading lower at times in Tokyo trading on the 29th, with the sharp drop in shares of Alphabet, Google's parent, in after-hours trading following its earnings release cited as a factor. As concern grows that massive AI investment spending will affect companies' finances, the development could weigh on the market.
The Nikkei 225 was reported to be at risk of falling in daytime trading on the 29th, with a decline of approximately ¥900 from the previous day's close expected. Views had been spreading that the US market's reaction to Alphabet's earnings would affect Japanese equities.
Alphabet shares plunged in after-hours trading following the US company's earnings release, affecting sentiment in the Japanese market. Concern that massive AI investment spending could create financial uncertainty remains a potential drag on the Nikkei 225 if it becomes a focus for investors.
On the other hand, buying could emerge if Advantest reports strong earnings, potentially supporting the broader market. The Nikkei 225's movement after the selling subsides was identified as the key focus.