Foreign Investors Sell 395 Billion Yen of Japanese Stocks as AI Bubble Fears Rise

JPN225-0.87%
According to Japan Exchange Group data, foreign investors recorded net sales of approximately 395 billion yen (about $2.5 billion) of Japanese stocks during the week ending May 29, ending eight consecutive weeks of net purchases. The selloff occurred as the Nikkei 225 index, driven by artificial intelligence-related stocks, surged past 65,000 points for the first time, raising concerns among market participants about overheating. Pelham Smithers Associates Managing Director Pelham Smithers noted that growing numbers of investors view AI as forming a bubble, with some global investors seeking to exit Japan and redirect funds to markets like Europe with less AI exposure.
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