Foreign investors net-sold about ¥395bn (≈$2.5bn) of Japanese equities in the week to May 29, ending an eight-week net-buying streak, Japan Exchange Group data show. The selling coincided with the Nikkei 225 briefly topping 65,000 for the first time, driven by AI-exposed names including SoftBank, Kioxia and Murata Manufacturing, and followed a sharp rally that prompted profit-taking. Pelham Smithers Associates managing director Pelham Smithers said rising concern that AI is forming a bubble has

Foreign investors net-sold about ¥395bn (≈$2.5bn) of Japanese equities in the week to May 29, ending an eight-week net-buying streak, Japan Exchange Group data show. The selling coincided with the Nikkei 225 briefly topping 65,000 for the first time, driven by AI-exposed names including SoftBank, Kioxia and Murata Manufacturing, and followed a sharp rally that prompted profit-taking. Pelham Smithers Associates managing director Pelham Smithers said rising concern that AI is forming a bubble has emerged, estimating roughly 70% of Japan’s 2026 gains are from AI-related stocks and noting some global investors are reallocating to less AI-concentrated markets such as Europe.