Japanese equity markets finished lower on Thursday, with the Nikkei 225 Index down 0.93% to close at 65,683. This decline followed a part of the previous session’s gains, as technology and semiconductor stocks faced selling pressure due to ongoing concerns about the artificial intelligence (AI) sector’s outlook.
Companies in the global AI supply chain saw sharp drops as investors took profits and reassessed valuations. SoftBank Group also declined ahead of its quarterly earnings announcement, with investors anticipating updates on its AI-related investments. Despite this downturn, oil prices eased as Iran and Oman agreed on partially reopening the Strait of Hormuz, which may help reduce inflation pressures.
Nintendo reported better-than-expected quarterly earnings, driven by strong sales of its Switch 2 gaming console and refunds related to US tariffs, leading its shares to outperform the technology sector.
