Japanese equities opened lower on Thursday, pressured by anxieties surrounding the artificial intelligence sector, which were triggered by declines in U.S. memory chip stocks like Dell and Micron Technology the previous day.

The Nikkei 225 index fell by 2.1%, reaching a level of 67,332.70 points.

In a note, IG's chief market analyst, Chris Beauchamp, observed that both the Nikkei and the Nasdaq Composite had "ridden the wave of the AI boom, but that trade now appears to be under pressure from uncertainty and faces the risk of further declines."

Among the worst performers on the Japanese benchmark index, Kioxia Holdings Corp. dropped by 8.9%, Kokusai Electric Corp. declined by 6.7%, and Ibiden Co., Ltd. fell by 5.9%.