Japan’s Nikkei Stock Average Ends at 3-Week Low on Tech Selloff over AI-Business Outlook (UPDATE 1)

Reuters

13:19 JST, December 18, 2025 (updated at 16:27 JST)

TOKYO, Dec 18 (Reuters) – Japan’s Nikkei share average ended at a three-week low on Thursday, pressured by heavyweight tech stocks as investors weighed the outlook for artificial intelligence and data center businesses.

The Nikkei .N225fell 1.03% to 49,001.5, its lowest close since November 25. The broader Topix .TOPX slipped 0.37% to 3,356.89.

Wall Street’s main indexes closed lower on Wednesday, with the S&P 500 and the tech-heavy Nasdaq sinking to three-week lows as nagging worries about the artificial intelligence trade weighed on technology stocks. .N

“The market’s concerns about the profitability of AI-related businesses and data centers in the U.S. have been coming to the surface,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

“Japan is not an exception because there are so many data centers being constructed in the country.”

SoftBank Group 9984.T fell 3.76% after Oracle ORCL.N dropped 5.4% following a report that said the cloud company’s largest data center partner Blue Owl Capital OWL.N will not back a $10 billion deal for its next facility.

Earlier this year, SoftBank Group, along with Oracle and OpenAI, announced plans to develop data centers in the U.S. to build out their ambitious Stargate project.

“The Stargate project is the center of U.S. data center development, and SoftBank is deeply involved in it,” Shimada said.

Chip-related Advantest 6857.T lost 3.32% and Fujikura, maker of fiber optic cable, fell 3.42%.

Financials fell ahead of the Bank of Japan’s policy meeting conclusion on Friday, with investors expecting the central bank to announce an interest rate hike.

Shares of Mitsubishi UFJ Financial Group 8306.T were down 1% and Mizuho Financial Group 8411.T lost 0.92%.

Bucking the trend, software testing firm Shift 3697.T jumped 5.09% to become the Nikkei’s top-percentage gainer. Railway operator Keisei Electric Railway 9009.Trose 4.57%.

The Topix’s value share index .TOPXV fell 0.13%, against a 0.63% fall in the growth share index .TOPX.