Tokyo Stocks Drop as Tech Falls on Fears of Weaker AI Chip Demand

Tokyo stocks ended lower today, led by selling of technology shares on fears that demand for semiconductors used in artificial intelligence could weaken after a low-cost AI model was developed by a Chinese startup.

The 225-issue Nikkei Stock Average ended down 548.93 points, or 1.39 percent, from Tuesday at 39,016.87. The broader Topix index finished 1.17 points, or 0.04 percent, lower at 2,756.90.

Shares of chip-testing equipment maker Advantest fell 11.14 percent, or 1,023 Japanese yen (JPY), to close at JPY 8,162.

Shares of semiconductor equipment maker Tokyo Electron fell 5.74 percent, or JPY 1,480, to close at JPY 24,325, while SoftBank Group, which invests in technology startups, fell 5.22 percent, or JPY 505, to close at JPY 9,176.

In terms of exchange rate, the US currency rose against its Japanese counterpart by about 0.82 percent to JPY 155.77.

 

(QNA)