Nikkei drops below 65,000 as AI-linked shares track Wall Street tech selloff

The Nikkei 225 Index fell 0.9% to below 65,000 on Tuesday, marking a third consecutive decline as Tokyo tracked an overnight tech-led retreat on Wall Street and heavy selling in artificial intelligence infrastructure stocks. Chip and AI-linked names led the drop, including Advantest, down 4.8%, Kioxia Holdings and Tokyo Electron, each off 1.9%, Taiyo Yuden, down 2.1%, and Ibiden, down 1.1%. The move followed a mixed U.S. close in which the Nasdaq Composite fell 0.76% and semiconductor shares led losses, while the Dow Jones Industrial Average rose 0.26% on financial-stock strength. Investors are watching Nvidia’s earnings later this week for fresh signals on AI-related demand, and Federal Reserve Chair Kevin Warsh’s Friday speech at the Jackson Hole symposium for clues on the policy outlook. Geopolitical pressure also remained in focus after the United States intensified sanctions on Iran and its trading partners in an effort to push Tehran back to negotiations.

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