TOKYO: Japan’s Nikkei share gauge fell on Friday, while the nation’s bonds surged and its currency touched a one-month high as heightening concerns about the AI sector spurred demand for haven assets.
The benchmark Nikkei 225 fell 0.34 percent to close at 62,693.16, trimming an earlier decline of more than 2 percent. The broader Topix slipped 0.79 percent to 3,965.81.
The tech-heavy Nasdaq slid 2.6 percent overnight as investors rotated into defensive areas such as consumer staples and healthcare. AI bellwether Nvidia sank about 4 percent, while Meta fell nearly 8 percent as investors grew cautious about AI spending plans detailed in its earnings. Tesla fell 3.1 percent after earnings and a cut to its 2026 capital spending plans.
With major Japanese companies due to report results from next week, influences from overseas markets are overwhelming scarce domestic trading cues, said Wataru Akiyama, an equities strategist at Nomura Securities.
The yield on the benchmark 10-year Japanese government bond dropped 8 basis points (bps) to 2.8 percent, poised for its lowest since August 7 and down from a three-decade high of 3.115 percent touched earlier this month. Yields move inversely to bond prices.
Comments