Japan's Nikkei drop 0.78%

Japanese markets fell notably, with software names leading the drop after fresh AI headlines. The Nikkei average dropped 0.78 percent to 54,293.36 while the broader Topix index settled 0.27 percent higher at 3,655.58.

IT service management company TIS plunged 15.8 percent, while NS Solutions and Trend Micro both slumped by 7.4 percent. Chip-linked bellwethers like Advantest and Tokyo Electron fell over 2 percent each.

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