Nikkei Falls Back Nearly 1,200 Points amid AI Selling

Tokyo, Nov. 21 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average fell back nearly 1,200 points on the Tokyo Stock Exchange on Friday, weighed down by selling focused on stocks related to artificial intelligence. The Nikkei index closed at at 48,625.88, down 1,198.06 points, or 2.40 pct, from Thursday, after surging more than 1,200 points the previous day. The broader TOPIX index edged down 1.84 points, or 0.06 pct, to3,297.73. Investors rushed to sell AI-related issues, including Advantest and SoftBank Group, after their U.S. peers dropped overnight, despite U.S. chip giant Nvidia’s strong earnings report, which reflected demand for AI data centers. “There was a sense of overheating (in AI-related stocks), in addition to skepticism about the (AI industry’s) growth scenario, such as whether their massive investments will pay off,” an official of a major brokerage firm said. Meanwhile, sectors backed by domestic demand, such as land transportation and real estate, attracted buying interest. Despite the Nikkei’s sharp fall, some 80 pct of the issues on the TSE’s top-tier Prime section rose on Friday. END [Copyright The Jiji Press, Ltd.]