Japan’s Nikkei Falls 1.6% As AI Safety Concerns Weigh On Tech Stocks.
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Japan’s benchmark Nikkei 225 index dropped 1.61% to close at 62,979.17 in early trading on Monday, pulled down heavily by major technology and AI-linked stocks following cautious comments from industry leaders. Conversely, the broader Topix index managed a 0.40% gain to 4,044.29, reflecting mixed market breadth as investors digested broader sector rotations.The primary catalyst for the tech sell-off was the cautious shift in artificial intelligence sentiment, sparked by OpenAI CEO Sam Altman’s announcement shelving a 2026 IPO over safety risks and Anthropic CEO Dario Amodei’s call to slow frontier model development. Heavyweight tech and semiconductor suppliers bore the brunt of the correction in Tokyo: SoftBank Group plunged 11.73%, Resonac Holdings fell 8.95%, and Taiyo Yuden dropped 7.85%. Compounding the pressures are looming monetary policy decisions from the Federal Reserve and the Bank of Japan, persistent energy shocks stemming from the Middle East crisis, and soaring crude oil prices, which continue to heighten global inflation concerns.
Japan’s benchmark Nikkei 225 index fell 1.61% to 62,979.17 in early trading on Monday, pressured by technology shares after senior artificial intelligence executives called for a more cautious approach to AI development. The broader Topix index gained 0.40% to 4,044.29.
Investor sentiment weakened after OpenAI Chief Executive Sam Altman said the company would not pursue a public listing in 2026, citing concerns over the risks associated with rapidly advancing artificial intelligence.
Anthropic Chief Executive Dario Amodei also urged AI companies to adopt a more deliberate pace of development. The comments raised concerns that a slowdown in AI investment could affect chipmakers, technology suppliers and companies that have benefited from the recent AI-driven market rally.
Technology-related stocks led losses in Tokyo. SoftBank Group declined 11.73%, while Resonac Holdings fell 8.95% and Taiyo Yuden dropped 7.85%. SoftBank has significant exposure to technology and AI-related investments, making its shares particularly sensitive to changes in investor sentiment.
Despite the weakness in the Nikkei, market breadth remained positive, with 160 stocks advancing against 64 decliners. Among the notable gainers, NEC rose 6.26%, Nomura Research Institute gained 6.08% and Recruit Holdings increased 5.87%.
Markets were also monitoring upcoming monetary-policy meetings by the Federal Reserve and the Bank of Japan. Persistent inflationary pressure has strengthened expectations of possible interest-rate increases, adding another source of uncertainty for equities.
The ongoing Middle East crisis also weighed on sentiment. Concerns over oil supplies, shipping disruptions through the Strait of Hormuz and higher energy prices have increased inflation risks and could complicate central banks’ policy decisions.
Analysts said AI and semiconductor stocks could remain under pressure as investors reassess technology valuations, the pace of AI infrastructure spending and the potential economic impact of higher interest rates.
