Tokyo, Oct. 15 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average posted its third-biggest point loss on record Thursday amid a sell-off in artificial intelligence-related shares. The index of 225 major stocks listed on the Tokyo Stock Exchange’s Prime section ended at 64,425.95, down 3,318.34 points, or 4.90 pct, from Wednesday. On a closing basis, the Nikkei slipped below 65,000 for the first time in about a month. The broader Topix index closed below 4,000 points for the first time in more than two months. On Wednesday, shares of a U.S. startup providing AI data-center capacity tumbled after yields on its corporate bonds surged, fueling concerns about the financial health of AI-related companies. The Philadelphia Semiconductor Index fell more than 4 pct, leading to heavy selling of chip and AI-related issues in Tokyo, such as chip manufacturing equipment maker Tokyo Electron and memory chip maker Kioxia Holdings, from the outset of Thursday’s trading. The AI industry relies heavily on interest-bearing debt, including corporate bonds, to finance massive capital expenditures. “Their shares are likely to be sold as funding concerns grow when interest rates rise,” a major securities house official said. Meanwhile, over 30 pct of the stocks listed on the TSE Prime section rose. “The stock market did not decline across the board,” a Japanese asset management firm official said. “Investors have shifted their funds from high-valuation stocks to those in companies that are less susceptible to impact from interest rate rises, such as pharmaceutical firms and retailers,” a major securities firm official said. END [Copyright The Jiji Press, Ltd.]
