Japan’s Nikkei stock average slid about 3% on Friday as technology and AI-related planning weighed on investor sentiment, with the broader Topix also slipping as tech stocks led declines. Market moves were amplified by renewed concern over higher energy costs stemming from Middle East tensions, which pushed oil prices higher and fed inflation fears. One report noted Japan’s June inflation at 1.7%, the highest in six months, reinforcing expectations of potential BOJ rate hikes. Despite the downdraft, the index was still set for a weekly gain, reflecting mixed but resilient performance amid the tech-led selloff. Analysts attributed the risk-off mood to a combination of AI capital expenditure worries and macro headwinds from oil prices, underscoring a broad tech-led retracement across Asia. Overall, concerns over AI investments and energy costs dominated trading, driving declines across major Japanese stocks.