Japan's Nikkei falls as SoftBank tanks on reports of OpenAI's IPO delay

KIOXIA Holdings

Yesterday 03:38

By Junko Fujita

    TOKYO, June 26 (Reuters) - Japan's Nikkei share average fell on Friday, retreating from a record high close as SoftBank Group 9984.T lost more than 12% after a report on a delay in OpenAI's initial public offering.  
The Nikkei .N225 fell 3.7% to 69,704.88 as of 0219 GMT, after rising 4.6% in the previous session.  
The broader Topix .TOPX was down 1.18% to 3,968.96.
Technology investor SoftBank, whose share price has been boosted by CEO Masayoshi Son's bet on OpenAI, fell 12.28%. 
   OpenAI is considering holding off on its public debut until next year, the New York Times reported on Thursday, citing three people involved in the company's deliberations.
"The news was negative for SoftBank Group as well as overall investors as AI is the centre of the market and the market wondered if there was anything negative in the industry outlook," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
Other AI-related heavyweights fell, with Advantest 6857.T and Tokyo Electron 8035.T losing 9.89% and 3.42%, respectively. 
Memory maker Kioxia 285A.T fell 9%.
"AI and chip-related shares have been volatile in recent sessions, but in the long term, their stock prices will be firm, supported by solid earnings," said Chizuru Morishita, researcher at NLI Research Institute.
"The AI-boom has brought an industry revolution, not just a temporary trend," she added.
Bucking the trend, chipmaker Renesas Electronics 6723.T rose 6% and Toyota Motor 7203.T gained 0.9%. 
Of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 55% rose, 41% fell and 2% traded flat. 
     

(Reporting by Junko Fujita; Editing by Rashmi Aich)
((junko.fujita@thomsonreuters.com;))