Japanese stocks fell again amidst growing concerns about the sustainability of the global AI boom. Investors are beginning to worry that AI development may cost significantly more than initially anticipated, particularly in the United States.
Major tech companies require ongoing funding for the research and development of new chips, data centres, and software. These concerns prompted traders to sell off AI-related and semiconductor stocks, which had previously driven the market higher.
The decline was exacerbated by low trading activity during the Lunar New Year holiday, when Chinese markets were closed, resulting in fewer participants across Asia.
As a result, investors continued taking profits in high‑valuation tech stocks, causing the Nikkei to record another day of losses.
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