Nikkei 225 falls 3% amid AI profitability doubts, chip selloff
Japan's Nikkei 225 slid 3% on Friday, with investors spooked by doubts about how profitable AI investments really are.
Chip equipment manufacturers like Advantest and Tokyo Electron saw steep falls after Amazon and Intel reported disappointing earnings, intensifying concerns about the enormous capital expenditure required to fund the AI boom.
Bank of Japan holds rates 1.25%
The Bank of Japan kept interest rates steady at 1.25%, but hinted they might raise them soon to keep inflation in check.
Some companies, like Ibiden and SoftBank Group, were hit hard, while others, including Konami and Oriental Land, held up thanks to strong earnings and cheaper oil prices.
Falling energy costs are giving Japan's economy a bit of a break for now, but more rate hikes could be on the way as soon as December.