Odaily Planet Daily reports that, according to data from the Japan Exchange Group, foreign investors net sold approximately ¥395 billion (about $2.5 billion) in Japanese stocks for the week ending May 29, ending eight consecutive weeks of net purchases. This selling occurred as the Nikkei 225 index, led by technology stocks, surpassed the 65,000-point mark for the first time, primarily driven by AI-related stocks such as SoftBank, Kioxia, and Murata Manufacturing. The rapid rise in the Nikkei index has raised concerns among some market participants about overheating, prompting them to take profits.
Pelham Smithers, Managing Director of UK-based stock research firm Pelham Smithers Associates, said: “An increasing number of people believe that artificial intelligence is forming a bubble; we estimate that approximately 70% of the Japanese stock market’s gain in 2026 has been driven by AI-related stocks.” He added that, as caution grows, some global investors “want to exit Japan and redirect their capital toward markets like Europe that are less focused on AI.” (Jin10)