Japan’s Nikkei share average fell sharply on Monday, dragged lower by technology stocks after executives at major artificial intelligence companies called for a more cautious approach to AI development.
The benchmark Nikkei 225 fell 1.61% to 62,979.17 in early trading, while the broader Topix gained 0.40% to 4,044.29.
Read more: Global Market Today: Asian stocks retreat after AI warnings, oil advances
AI-related stocks came under pressure after OpenAI Chief Executive Sam Altman said the company would not go public in 2026, citing concerns over the safety risks associated with rapidly advancing artificial intelligence. Anthropic Chief Executive Dario Amodei also called over the weekend for AI companies to adopt a more deliberate approach to development, according to Reuters.
The comments weighed particularly heavily on Japanese technology and semiconductor stocks, which have been among the major beneficiaries of the global AI investment boom.
Read more: Anthropic's AI warning may weigh on chips, but trade seen intact
Markets are also bracing for key central bank decisions this week, with investors expecting potential rate hikes from both the U.S. Federal Reserve and the Bank of Japan as inflationary pressures remain elevated.
Geopolitical concerns added to the cautious mood. Oman said a meeting between Iran and Gulf states on managing traffic through the Strait of Hormuz had been postponed following new Houthi strikes on Saudi Arabia and reports of an attack on a vessel.
Despite the Nikkei’s decline, market breadth remained positive, with 160 stocks advancing compared with 64 decliners. The index’s heavy exposure to technology companies, however, amplified the impact of losses in the sector.
SoftBank Group was the biggest decliner on the Nikkei, tumbling 11.73%. Resonac Holdings fell 8.95%, while Taiyo Yuden dropped 7.85%.
On the other hand, NEC gained 6.26%, making it the index’s biggest percentage gainer. Nomura Research Institute rose 6.08%, while Recruit Holdings advanced 5.87%.
The contrasting performance of the Nikkei and Topix highlights the sharp divergence between technology-heavy stocks and other parts of the Japanese market as investors reassess the outlook for AI spending and prepare for major monetary policy decisions.
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