Nikkei drops 2.7% as Alphabet AI spending fears hit sentiment
Japanese shares fell sharply on Friday, dragged by technology stocks after Alphabet's earnings sparked concerns over AI investment costs. The Nikkei closed at 64,611.15, still posting a slight weekly gain.
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Japan's benchmark Nikkei index tumbled more than 2 percent on Friday, as a sell-off in Alphabet shares stoked worries about ballooning expenditures on artificial intelligence.
The decline came amid a broader tech rout triggered by Google's parent company reporting higher-than-expected AI infrastructure spending.
The Nikkei ended the session at 64,611.15, down 2.73%, but managed a 0.7% advance for the week after a steep 6.4% decline in the prior week.
Since the start of the month, the index has shed roughly 8% of its value, having entered correction territory last week.
The Nikkei's fall mirrors global jitters over the cost of artificial intelligence development, with investors questioning the return on massive capital outlays. Despite Friday's drop, the index eked out a weekly gain, suggesting some resilience. However, the index remains in correction territory, down about 8% from its recent peak. Market participants will watch for further earnings from tech heavyweights and central bank signals for direction.
Original source: Maaal
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