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TOKYO - Tokyo stocks fell sharply on July 7 as a selloff in South Korean chip shares triggered fresh concern over the sustainability of the AI boom, dragging the Nikkei 225 lower while banks and other value shares resisted the decline.
Image of Nikkei Slides as Samsung Shock Hits AI Trade

Tesla has begun full-scale landings of its electric vehicles at Mikawa Port in Aichi Prefecture, choosing a major auto import hub in Toyota’s home region as a new base for shipments to western Japan.

Tokyo stocks ended mixed on July 6 as profit-taking in AI and semiconductor-related shares kept the Nikkei 225 nearly flat, while broader buying in banks, value stocks and domestic demand names lifted the TOPIX to a fresh record high.


Internet communication through smartphones and computers has become indispensable to daily life, and the facilities known as data centers that support ordinary actions such as watching videos online and sending messages are now expanding rapidly as demand for artificial intelligence grows.

The yen has weakened to the 162 range against the dollar for the first time in about 40 years, but the latest market environment differs sharply from the period four decades ago, when Japan was still climbing toward the height of its economic power.

Japan is seeking to turn economic security into diplomatic leverage as the United States deepens its America First approach, with policymakers focusing on semiconductors, critical minerals, energy, shipbuilding and advanced technology as areas where Japan can make itself indispensable to Washington.

Japan's Government Pension Investment Fund said its investment operations for fiscal 2025 generated a surplus of more than 41 trillion yen, lifted by gains in domestic and overseas stock markets.