Japan's Nikkei falls to a near three-month low amid technology sell-off

Japan's Nikkei 225 Index fell 2.65% to close at 62,908 on Thursday, its lowest level in nearly three months. The decline was driven by heavy selling in technology and artificial intelligence (AI) stocks as investors grew concerned about whether large investments in AI would deliver sufficient returns.

Market sentiment was further weakened by rising oil prices following deadly attacks on a Saudi oil field, which heightened tensions in the Middle East and increased concerns about inflation. Japan is particularly vulnerable to such developments due to its heavy reliance on oil imports from the region.

Technology stocks led the market losses, with Kioxia Holdings falling 6.8%, Advantest and Taiyo Yuden each declining 6%, and SoftBank Group dropping 6.9%. Tokyo Electron also fell sharply by 7%, reflecting continued pressure on the technology sector.