Japan's Nikkei drops 3% as tech stocks slide on AI spending concerns

Japan's Nikkei share average fell as much as 3 percent on Friday, led by chip-related stocks, as concerns grew over the sustainability of spending to fund the AI boom, tracking overnight losses on Wall Street. Late earnings from Amazon.com and Intel showed massive cash burns, sending their shares and peers sharply lower in extended trading. Chip equipment makers Advantest and Tokyo Electron plunged 9.1 percent and 5.6 percent, respectively, with the Nikkei down 2.8 percent as of 2003 GMT. The Bank of Japan is widely expected to leave interest rates unchanged on Friday, while falling crude oil prices on Middle East peace optimism supported stocks. For the week, the Nikkei remains up 0.2 percent, with other chip losers including Ibiden, down 15.2 percent, and SoftBank Group, down 6.7 percent.