Japanese stocks fall as AI safety concerns and oil surge weigh on markets

  • Nikkei 225 fell 1.7% below 63,000, reaching a six-week low on Monday.
  • SoftBank Group dropped 12%, while Kioxia Holdings and Taiyo Yuden also posted sharp losses.
  • Saudi Arabia shut the East-West pipeline as investors anticipated Fed and BOJ rate increases.

Japanese stocks fell sharply on Monday, with the Nikkei 225 dropping 1.7% to below 63,000 and reaching a six-week low as declines in U.S. stock futures compounded pressure from concerns about the safety of advanced artificial intelligence development. Anthropic CEO Dario Amodei called on AI companies to slow work on their most advanced models because of safety risks and said Anthropic would add safeguards. Oil prices also rose after Saudi Arabia shut the East-West pipeline, an alternative route to the Strait of Hormuz, reinforcing expectations of tighter monetary policy. Investors expect both the Federal Reserve and the Bank of Japan to raise interest rates this week. Technology and AI-linked shares led the selloff, including Kioxia Holdings, SoftBank Group, Advantest, Taiyo Yuden and Tokyo Electron.

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