Japan's Nikkei ends at 3-week low on tech selloff over AI-business outlook

Market Overview - The Nikkei index fell 1.03% to 49,001.5, marking its lowest close since November 25, while the broader Topix slipped 0.37% to 3,356.89 [1][8] - Wall Street's main indexes also closed lower, with the S&P 500 and Nasdaq reaching three-week lows due to concerns about the artificial intelligence trade impacting technology stocks [1][8] AI and Data Center Concerns - Market concerns regarding the profitability of AI-related businesses and data centers in the U.S. have become more pronounced [2] - Japan is experiencing similar issues, with numerous data centers under construction in the country [3][8] Company-Specific Movements - SoftBank Group's shares fell 3.76% following Oracle's 5.4% drop, attributed to a report indicating that Blue Owl Capital will not support a $10 billion deal for Oracle's next data center facility [6][8] - The Stargate project, a significant U.S. data center development initiative involving SoftBank, Oracle, and OpenAI, is central to these developments [6][8] - Chip-related companies such as Advantest and Fujikura saw declines of 3.32% and 3.42%, respectively [6][8] Financial Sector Performance - Financial stocks declined ahead of the Bank of Japan's policy meeting, with expectations of an interest rate hike; Mitsubishi UFJ Financial Group shares fell 1% and Mizuho Financial Group lost 0.92% [7][8] - In contrast, software testing firm Shift rose 5.09%, becoming the top-percentage gainer on the Nikkei, while railway operator Keisei Electric Railway increased by 4.57% [7][8] Index Performance - The Topix's value share index decreased by 0.13%, while the growth share index fell by 0.63% [7][8]