Global Market: Japan's Nikkei falls 3% as AI spending concerns hit chip stocks; BOJ holds rates

Japan’s benchmark Nikkei 225 fell sharply as concerns over artificial intelligence spending pressured chip-related shares. The Bank of Japan held interest rates as the market declined.

Chip equipment makers lead losses

The Nikkei 225 was down 2.8% at 50,200 GMT, after falling as much as 3% earlier. Chip equipment manufacturers were among the session’s biggest decliners.

The move highlights the immediate pressure on Japanese chip-linked companies as investors focus on concerns surrounding spending on artificial intelligence. The available information does not identify specific companies or provide further details about the spending concerns.

BOJ keeps rates unchanged

The market decline came as the BOJ held rates. No further details on the central bank’s decision or its outlook were provided.

For now, the reported market impact is concentrated in the Nikkei’s decline and losses among chip equipment makers. Further developments will depend on how concerns over AI spending affect sentiment toward the sector.