Japan’s Nikkei 225 declined 0.62% to settle at 64,916 on Monday, prolonging a downtrend from the prior week amid persistent weakness in technology equities. Concerns lingered regarding the potential for sufficient returns from substantial investments in artificial intelligence (AI) infrastructure, particularly in light of Japanese firms’ participation in the worldwide AI expansion.

However, downward momentum subsided as US stock futures staged a significant recovery after substantial declines on Friday. Notable underperformers included Taiyo Yuden, which decreased 4.9%, Lasertec, down 3.9%, Ibiden, which dropped 2.6%, Tokyo Electron, losing 2.6%, and SoftBank Group, falling 2%.

Kioxia shares faced continued downward pressure following disclosures indicating leveraged long positions in the equity climbed to approximately ¥920 billion last week, representing the largest such position among firms on the Tokyo Stock Exchange. Market participants are presently focused on the release of Japan’s forthcoming trade and inflation data to gauge the nation’s economic trajectory.