Business · Markets · 1 hr ago

Japan’s Nikkei falls more than 6% as AI-linked stocks sell off

Japan’s Nikkei falls more than 6% as AI-linked stocks sell off

Japan’s Nikkei 225 fell more than 6% soon after trading began on Friday, as shares across Asian markets also declined.

The drop followed a sharp sell-off on Wall Street, where the Nasdaq fell 5.5% on Thursday.

Investors sold AI and semiconductor stocks amid concerns about the cost of borrowing and whether construction of AI data centers will slow.

Data centers use chips, electricity and other services, so a slowdown could reduce demand for companies that have benefited from the AI boom.

US election results added to worries about data center rules, as Democrats’ victories raised the possibility that governments could pause construction.

The sharp falls matter because large AI-related companies have a strong influence on wider stock market indexes.

Asian markets opened lower as the sell-off spread, but the sources do not say what will happen next.

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Maki Sawadastrategist in Nomura Securities’ Investment Content Department
Japanese stocks were sold across the board amid growing uncertainty over the economic and political outlook following the U.S. midterm elections.
via Kyodo