TOKYO: Japan’s Nikkei share average tumbled for a second straight day on Thursday, dragged lower by profit-taking in the artificial intelligence (AI) sector and as trade tensions heat up with China.
The Nikkei 225 Index shed 1.6 percent to close at 51,117.26, extending a 1.1 percent drop on Wednesday. The broader Topix lost 0.8 percent.
The Nikkei gauge marked a record closing high on Tuesday, with gains over recent months driven largely by optimism over AI.
SoftBank Group, a major domestic investor in AI, and chip sector heavyweights like Advantest Corp and Tokyo Electron have been major beneficiaries of the trend.
“The decline in certain high-priced stocks, particularly AI and semiconductor-related stocks, is weighing heavily on the index today,” said Nomura Securities strategist Wataru Akiyama.
Shares in Japanese chemical manufacturers declined after China’s commerce ministry said it is launching an anti-dumping probe into imports of chemicals used in chipmaking.
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