Japan's Nikkei drops 1.35%

Japanese markets lost ground due to uncertainty over the Bank of Japan's policy outlook, increasing anxieties over artificial intelligence and rising concerns about the lack of transparency in private lending.

The Nikkei average fell 1.35 percent to 58,057.24, with air transportation, securities house shares and banks leading declines. The broader Topix index settled 1.02 percent lower at 3,898.42.

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