Nikkei index slides near two-week low as inflationary worries weigh

Japan's Nikkei tanked on Tuesday as a selloff in AI-related stocks gathered pace after weakness in US chip shares. The benchmark Nikkei 225 fell 1.82% to 67777, coming off lows around 67000-mark but ending around two-week low. The index has lost for a fourth consecutive session. In overnight trades, tech-heavy Nasdaq dropped 0.44% overnight as chip stocks eased. The International Monetary Fund on Tuesday raised its economic growth projection for Japan to 0.7% for 2026, up 0.1 percentage point from its July forecast as it highlighted support measures partly cushioning the impact from higher energy prices. Japan?s growth rate is expected to be 0.7% in 2027, unchanged from the July forecast. The report said that growth will stabilize at the same level next year. However, inflationary worries are weighing on the sentiments in near term. Data on Tuesday showed Japan's wholesale prices in September rose 6.8% year-on-year, while yen-based import prices spiked 24.5%.

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