AI Selloff: Japan's Nikkei Enters Bear Market, SoftBank Slides 11%

Japan's Nikkei 225 stock index fell into a bear market on Tuesday, as a global selloff in artificial intelligence (AI) shares deepened. A bear market means a key index has dropped 20% or more from its recent high. The Nikkei has now fallen past that mark. SoftBank Group, a major Japanese technology investor, saw its shares slide 11%. The company holds large stakes in AI-related businesses, making it sensitive to shifts in investor sentiment toward the sector. The decline follows growing caution worldwide over high valuations in AI stocks. Investors are questioning whether the rapid rise in AI share prices is justified. Other technology shares in Japan also fell. The selloff spread across markets, reflecting broad concern rather than trouble at any single company. Analysts say the move shows how quickly confidence in AI can reverse. Money that flowed into the sector on optimism is now moving out. The Nikkei's slide into bear territory marks a sharp turn for a market that had climbed strongly on AI enthusiasm.