SoftBank Plunges 10.7% as AI Concerns Drag Nikkei to Six-Week Low

Japan’s Nikkei 225 closed 0.81% lower at 63,493 on Monday, hitting its lowest level in six weeks. The decline followed weakness in U.S. stock futures as concerns grew over safety risks surrounding the development of artificial intelligence.

Sentiment toward technology stocks weakened after Anthropic CEO Dario Amodei urged AI companies to slow the development of their most advanced models due to safety concerns. His remarks prompted investors to reassess the outlook and risks surrounding companies with heavy exposure to the AI sector.

Markets were also pressured by a sharp rise in oil prices after Saudi Arabia halted operations at the East-West pipeline. The route has been used as an alternative to bypass the Strait of Hormuz, and the disruption added to concerns over energy supply and inflation.

Investors are also preparing for possible interest-rate hikes from both the Federal Reserve and the Bank of Japan this week. Expectations of tighter monetary policy added further pressure on technology stocks and other rate-sensitive sectors.

Technology and AI-linked shares led the losses. Kioxia Holdings plunged 6.4%, Advantest fell 2%, and Taiyo Yuden dropped 5.4%. SoftBank Group slumped 10.7% after OpenAI CEO Sam Altman said the ChatGPT maker would not pursue an initial public offering this year.(mrv)

Source : Newsmaker.id