Solid Gold Berjangka - Japan’s Nikkei 225 index fell 0.62% to close at 64,916 on Monday (October 19), extending the losses seen the previous week. Pressure persists within the technology sector as investors continue to question whether heavy spending on artificial intelligence (AI) infrastructure will yield adequate returns.
These concerns are particularly pronounced in Japan, where many companies have significant exposure to the global expansion of AI. Nevertheless, selling pressure began to ease after U.S. stock index futures rebounded sharply, following a steep decline in Friday’s trading session.
Technology stocks were the primary drag on the index. Taiyo Yuden fell 4.9%, SoftBank Group weakened by 2%, Lasertec dropped 3.9%, Ibiden declined 2.6%, and Tokyo Electron lost 2.6%.
Shares of Kioxia also remain vulnerable; reports indicate that leveraged long positions in the stock reached approximately ¥920 billion last week—the highest among all companies listed on the Tokyo Stock Exchange. This situation raises concerns regarding potential selling pressure should sentiment toward AI-related stocks deteriorate further.
Investors are now awaiting Japan’s trade and inflation data for a clearer picture of the domestic economic landscape. As long as concerns regarding AI-sector valuations remain elevated, the Nikkei is expected to stay volatile, with technology stocks serving as the primary driver of market direction. (srh)