Nikkei slumps 5pc as tech stocks hamered by AI

TOKYO: Japan’s Nikkei share average tumbled nearly 5 percent on Thursday, with tech stocks hit hard by media reports about distressed debt at US cloud-computing provider CoreWeave, while hot US inflation figures sparked fears of higher interest rates.

The tech-heavy Nikkei ended the day down 4.9 percent at 64,425.95. The broader Topix fell 2.4 percent.

Selling was concentrated among AI-linked stocks, with chip equipment makers Advantest and Tokyo Electron sliding 15 percent and 7.8 percent, respectively. AI-focused startup investor SoftBank Group skidded 9.3 percent.

The market failed to draw any support from Taiwanese chipmaker TSMC’s record earnings, which came late in the Tokyo session.