^{Photo: The Independent}

Wall Street Weakness Spreads to Asia

Japanese technology stocks came under heavy pressure as concerns over slowing artificial intelligence infrastructure spending in the United States spilled into Asian markets. The sell-off followed a sharp overnight decline in U.S. tech shares, where investors reassessed the pace and scale of AI-related capital expenditure.

The tech-heavy Nasdaq Composite fell 1.81%, weighed down by losses in major AI and cloud names including Nvidia, Oracle, and Broadcom. That downturn set the tone for Thursday’s trading in Asia, with Japan leading regional losses.

SoftBank at the Center of the Sell-Off

SoftBank Group emerged as one of the biggest casualties of the market move. Shares of the technology investment conglomerate dropped as much as 7.25% during the session, placing it among the top losers on the Nikkei 225. Although the stock recovered some ground later in the day, it was still trading around 3% lower.

The broader Nikkei index declined 1.23%, underperforming other major Asian benchmarks as investors rotated out of high-growth and AI-exposed names.

SoftBank’s shares have been particularly volatile over the past month, reflecting heightened sensitivity to shifts in sentiment around artificial intelligence investment cycles and long-term returns.

U.S. AI Infrastructure Concerns in Focus

The latest bout of selling was triggered in part by renewed doubts about the pace of U.S. data center and cloud infrastructure expansion. Oracle shares fell after reports suggested that financing for a planned $10 billion data center in Michigan had stalled. The company has recently pushed back against speculation that certain AI-related projects tied to OpenAI had been delayed until 2028, but investor caution remains elevated.

Because many global AI investment plans are anchored in U.S. hyperscaler spending, any sign of delay or recalibration tends to reverberate across international markets.

Japan’s Deep Exposure to AI Supply Chains

Japan’s technology sector is uniquely exposed to global AI investment trends. The country is a critical supplier of advanced semiconductor equipment, precision machinery, and power infrastructure components used in data centers worldwide.

Advantest, a major semiconductor testing equipment provider, saw its shares fall as much as 5%. Other technology heavyweights, including Lasertec, Renesas Electronics, and Tokyo Electron, declined between 3% and 4%, reflecting broad-based weakness across the sector.

Market strategists note that Japan’s role in the AI ecosystem amplifies both the upside during investment booms and the downside when spending expectations soften.

Strong Export Data Offers a Counterbalance

Despite the market sell-off, underlying economic data points to continued strength in Japan’s tech exports. Official figures released on Wednesday showed that exports of electrical machinery rose 7.4% year on year, while semiconductor-related exports jumped 13%.

Analysts say this reflects the ongoing translation of U.S.-led tech investment into demand for specialized Japanese equipment. However, equity markets are increasingly forward-looking, with investors focusing on whether AI spending growth will moderate after a period of rapid expansion.

Regional Markets Show Relative Resilience

Elsewhere in Asia, declines were more muted. South Korea’s Samsung Electronics slipped 0.93%, while SK Hynix reversed early losses to close up 0.73%, supported by optimism around memory chip demand. In Taiwan, shares of TSMC, the world’s largest contract chipmaker, were marginally lower, showing relative resilience compared with Japanese peers.

Investor Sentiment Turns Cautious

The latest moves highlight a shift in market psychology. While long-term enthusiasm for AI remains intact, investors are becoming more selective, scrutinizing timelines, financing, and returns on massive infrastructure investments.

For Japanese tech stocks, particularly those tied closely to U.S. AI spending, near-term volatility may persist as markets weigh strong export fundamentals against rising uncertainty over the next phase of the global AI buildout.