Japan’s Nikkei Poised to Enter Bear Market as AI Selloff Deepens

Japan's Nikkei 225 Stock Average is currently on track to enter a technical bear market. This decline is driven by a deepening AI selloff as investors actively unwind artificial intelligence-related trades. The rout in AI has significantly battered tech valuations, pushing the Nikkei closer to the bear market threshold. Market participants are reacting to the shift in sentiment regarding AI, leading to a broader downturn in the Japanese equity market's performance during this period.