Japanese markets fall sharply on tech stocks

Japanese markets fell sharply as a slump in tech stocks overshadowed gains in the financial sector. The Nikkei average dipped 0.92 percent to 39,565.80 while the broader Topix index settled 0.26 percent higher at 2,758.07.

Technology stocks such as Tokyo Electron, SoftBank Group, Advantest and Fujikura plunged 5-11 percent amid DeepSeek's emergence as a disruptive force in the AI landscape.

Chinese firm DeepSeek's artificial intelligence chatbot has soared to the top of the Apple Store's download charts, casting doubt on Silicon Valley's hefty AI capex spending and the sustainability of the US technical edge in artificial intelligence.

Lender Mitsubishi UFJ Financial gained 0.7 percent while Sumitomo Mitsui Financial and Mizuho Financial both added 1.6 percent on expectations that higher interest rates will produce stronger domestic profits.

Japan's leading index decreased less than initially estimated in November, the latest data from the Cabinet Office showed on Monday.

The leading index, which measures future economic activity, dropped to a 3-month low of 107.5 in November from 109.1 in October. The flash reading was 107.0.

Likewise, the coincident index that measures the current economic situation registered 115.4, down from 116.8 in the previous month. The latest score was revised up from 115.3.

On the other hand, the lagging index improved to 108.1 in November from 107.7 a month ago. The initial score was 108.7.

Powered by Capital Market - Live News