Japan’s Nikkei 225 recorded a weekly loss on Friday, as investors assessed the outlook for the burgeoning AI sector amid prevailing stress in global bond markets that dampened sentiment. The Nikkei experienced a slight decline of 0.02%, concluding the day at 69,030.92, after rebounding from an initial drop of 1.3%. The index concluded the week with a decline of 0.39%. The broader Topix gained 0.33% to 4,104.81 on Friday. US equity indexes experienced a decline overnight, primarily influenced by technology firms following a report indicating that OpenAI’s annualised revenue was $20 billion lower than previously communicated by the company.
Shares of Nikkei heavyweight SoftBank Group, a significant investor in OpenAI, declined by approximately 4%. Global borrowing costs continued to be high, as a spike in oil prices exacerbated inflation, compounding the pressures from substantial corporate issuances and government debt. “Reports that a major unlisted AI company’s revenue fell short of its own forecasts triggered a chain reaction of selling in related stocks,” Sony Financial Group analysts said in a report. “Globally high interest rates, driven in part by concerns over France’s fiscal situation, are also capping stock price gains.”
The week observed the Nikkei surpass the 70,000 threshold, concluding at its peak since June 25 on Tuesday, before experiencing a decline in momentum. “Japanese shares rose sharply at the start of the week but were subsequently weighed down by profit-taking,” Ina Harimoto wrote in a report. Domestic tech shares experienced an uptick following the announcement by semiconductor equipment manufacturer Rorze after market close on Thursday, indicating an upward revision of its earnings forecasts attributed to increasing demand. The company’s shares increased by the daily limit of 700 yen, representing a rise of 15.79%.
On the Nikkei 225, there were 148 advancers compared to 74 decliners, with 3 remaining unchanged. The largest losers were Fast Retailing, down 4.04%, followed by Renesas Electronics, 4% lower, and Asahi Kasei, which lost 3.94%. The largest gainers included Shift, which increased by 6.48%, followed by Nomura Research Institute, rising 5.09%, and Trend Micro, which saw a gain of 4.91%, achieving its highest close since December 2025.
