Published on 07/24/2026 at 02:56 am EDT
(Reuters) - Japan's Nikkei share average ended more than 2% lower on Friday as a sharp decline in Google parent Alphabet's shares spurred concerns about heavy AI spending.
The Nikkei fell 2.73% to close at 64,611.15, but rose 0.7% for the week after a 6.4% fall in the previous week. The broader Topix slipped 1.05% to 4,011.31.
The Nikkei has lost nearly 8% so far this month, tumbling into correction territory last week. Its moves have been heavily influenced by the tech-heavy South Korean benchmark KOSPI and the U.S. Philadelphia semiconductor index.
Shares of Alphabet sank 7% overnight after the company reported higher spending plans while it also burned cash. Wall Street indexes closed lower, with the Nasdaq shedding more than 2%.
Concerns resurfaced over whether heavy spending on AI infrastructure is sustainable after Alphabet shares fell sharply overnight, said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
"The (Nikkei) index has been affected by overseas factors, not local cues. Many Japanese companies will start reporting their earnings from today, and if their outlook is strong, the index's trend may change," said Shimada.
Chip-related shares fell, with Advantest and Tokyo Electron losing 6.02% and 4.99%, respectively.
Technology investor SoftBank Group fell 7.06% and memory chip maker Kioxia lost 9.49%.
Shares supported by domestic demand rose, with East Japan Railway and West Japan Railway rising nearly 2% each. Central Japan Railway, which runs bullet trains between Tokyo and Osaka, rose 1.62%.
Otsuka Holdings, a maker of Pocari Sweat, climbed 2.2% to become the top percentage gainer on the Nikkei.
Of the more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 40% rose, 56% fell and 3% traded flat.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

Sumber : Reuters