Key facts
- Foreign investors were net sellers of Japanese stocks last week.
- This ended a two-month streak of purchases.
- The buying streak had previously driven Japan's benchmark index to record highs.
- Concerns about a potential bubble in AI-related stocks are cited as a reason for the shift.
Overseas investors turned to net sellers of Japanese shares last week, breaking a two-month streak of purchases. This buying spree had previously propelled Japan's benchmark stock index to multiple all-time highs. The shift in investor sentiment comes amid growing concerns about a potential bubble in artificial intelligence-related stocks. Asian stocks declined along with US equity-index futures as enthusiasm for the artificial intelligence trade cooled after driving markets to record highs this year.