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

Japanese shares tumbled on Friday, with the Nikkei 225 falling as much as 3%, as concerns over the sustainability and profitability of artificial intelligence investments triggered a sell-off in technology stocks across global markets, Reuters reported.

The decline followed overnight losses on Wall Street, where disappointing reactions to earnings from Amazon.com and Intel intensified concerns about the enormous capital expenditure required to fund the AI boom. Both companies reported substantial cash outflows, weighing on their shares and technology peers in extended trading.