Japan's Nikkei falls as SoftBank tanks on reports of OpenAI's IPO delay


A man stands in front of an electronic quotation board displaying the Nikkei 225 stock prices on the Tokyo Stock Exchange in Tokyo - Photo by Kazuhiro NOGI / AFP

TOKYO: Japan's Nikkei share average fell on Friday, retreating from a record high close as SoftBank Group lost more than 12% after a report on a delay in OpenAI's initial public offering.

The Nikkei fell 3.7% to 69,704.88 as of 0219 GMT, after rising 4.6% in the previous session.

The broader Topix was down 1.18% to 3,968.96.

Technology investor SoftBank, whose share price has been boosted by CEO Masayoshi Son's bet on OpenAI, fell 12.28%. OpenAI is considering holding off on its public debut until next year, the New York Times reported on Thursday, citing three people involved in the company's deliberations.

"The news was negative for SoftBank Group as well as overall investors as AI is the centre of the market and the market wondered if there was anything negative in the industry outlook," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

Other AI-related heavyweights fell, with Advantest and Tokyo Electron losing 9.89% and 3.42%, respectively.

Memory maker Kioxia fell 9%.

"AI and chip-related shares have been volatile in recent sessions, but in the long term, their stock prices will be firm, supported by solid earnings," said Chizuru Morishita, researcher at NLI Research Institute.

"The AI-boom has brought an industry revolution, not just a temporary trend," she added.

Bucking the trend, chipmaker Renesas Electronics rose 6% and Toyota Motor gained 0.9%.

Of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 55% rose, 41% fell and 2% traded flat. - Reuters

 

 

 

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