TOKYO: Japan’s Nikkei share average tumbled on Thursday as chip-sector shares slumped with investors turning increasingly cautious about the outlook for AI-related spending.
The tech-heavy Nikkei fell 2.7 percent to close at 62,907.84, undoing all of Wednesday’s 0.9 percent rally.
The broader Topix slipped 1.1 percent, following the previous day’s 0.9 percent advance.
Despite overall solid results, shares of US chip equipment maker Lam Research declined in extended trading, with Iwai Cosmo Securities analyst Kazuyoshi Saito pointing to worries about demand from China.
Chip-sector shares led the Nikkei lower, with Advantest dropping 6 percent and Tokyo Electron down 7 percent.
Data-centre cable maker Fujikura lost 6.2 percent. AI-focused startup investor SoftBank Group skidded 6.9 percent.
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