Japan's Nikkei falls more than 2% on AI spending worries

Japan's Nikkei fell 2.69% to 64,634.04 while the broader Topix slipped 1.28%, dragged by chip-related stocks such as Advantest and Tokyo Electron losing over 5% each. The selloff was triggered by Alphabet shares sinking 7% overnight after reporting higher AI spending plans, raising concerns about the sustainability of heavy AI infrastructure investments. The Nasdaq also shed more than 2%, signalling a global tech rout that may weigh on Indian IT stocks in subsequent sessions.