The Nikkei 225 Index fell 0.5% to around 65,400 on Friday, extending losses from the previous session as technology stocks slumped for a second day amid persistent concerns about the artificial intelligence trade. Broader market sentiment was also weighed down by a rebound in oil prices following renewed tensions in the Strait of Hormuz, raising fresh uncertainty over efforts to fully reopen the key shipping route. Meanwhile, domestic data showed Japan’s household spending fell 3.3% in June, defying expectations for a 1% increase and highlighting continued softness in consumer demand. In corporate news, SoftBank Group tumbled 6% despite reporting stronger-than-expected earnings, as investors remained cautious over the company’s aggressive AI investments. Meanwhile, Nintendo gained 4% after posting solid results, supported by US tariff refunds and strong sales of two first-party titles for its flagship Switch 2 console.