TOKYO: Japan’s Nikkei share average ended sharply lower on Friday, dragged down by technology-related stocks, as fresh valuation concerns drove US stocks lower overnight.
The Nikkei 225 Index sank 2.4 percent to close at 48,625.88, finishing the week down 3.5 percent. The broader Topix edged down 0.1 percent and lost 1.8 percent over the past five days.
Overnight, Wall Street stocks slid in a sharp reversal from an early rally, as optimism faded over quarterly results from artificial intelligence bellwether Nvidia.
Nvidia’s record profits failed to dispel worries about overextended valuations in the AI sector, and traders in Japan may also be cautious as a holiday weekend looms and new stimulus by the government stirs concerns about the nation’s finances, said Nomura Securities strategist Fumika Shimizu.
The yen traded near a 10-month low, and long-term Japanese government bond yields were close to record highs as the nation’s cabinet approved a massive economic stimulus plan.
“Concerns about Japan’s fiscal deterioration and the so-called negative aspects of yen weakness are likely emerging,” Shimizu said.
There were 163 advancers on the Nikkei index, against 62 decliners.
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