Japan's Nikkei slips as chip shares pressured by AI capex caution

Japan’s Nikkei fell 0.8% to 64,128.54 by 0137 GMT on Thursday, reversing part of its 0.9% rise a day earlier. Business Recorder reported that chip shares led the retreat as investors questioned whether AI-related investment would remain strong into 2027, while the broader Topix was little changed after gaining 0.9% on Wednesday.

Tokyo Electron dropped 4.1%, taking 212 points off the Nikkei, while Screen Holdings lost 6% and Lasertec declined 2.7%. Caution about future AI spending followed a pullback in Lam Research shares during extended US trading, despite the chip equipment maker reporting solid results; an analyst also cited concern about demand from China. Services stocks rose 2.2%, and IT services provider SHIFT gained 9%, the strongest percentage advance on the Nikkei.