Tokyo stocks slide 1,400 points as AI selloff hits Nikkei

Tokyo stocks opened lower on Friday, with the Nikkei average falling over 1,400 points to the mid-61,400 range, dropping below 62,000 for the first time in about three months. The decline follows a sharp drop in US tech stocks. US high-tech shares plunged on concerns over the recoverability of AI-related investments. The Nasdaq fell 2.6%, and the Philadelphia Semiconductor Index dropped 6.7% after Meta Platforms reported its first-ever negative free cash flow, heightening financial worries over massive AI spending. Selling was led by AI and semiconductor stocks such as Advantest and Kioxia. Rising oil prices due to Middle East tensions and a weaker Korean KOSPI also weighed on investor sentiment, while Fast Retailing and KDDI gained.