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Japanese stocks were sold off heavily in Monday's session, September 14, tracking weakness across global equities as major artificial intelligence companies, including Anthropic and OpenAI, called for a slowdown in advanced AI development, while rising tensions in the Middle East kept crude oil prices elevated. In addition, investors were awaiting the US Federal Reserve's policy decision, with expectations of a rate hike strengthening following the latest inflation reports. The Nikkei 225, which tracks the performance of 225 highly capitalised and liquid publicly listed Japanese companies, fell 0.9% to 63,492, extending its losing streak for the second day after a 2% crash in the previous session. Among individual stocks, SoftBank Group, a major investor in technology startups, plummeted 10.7%, while Tokyo Electron closed 1% lower. Advantest, which has the largest influence on the Nikkei 225, fell more than 2%, while other chip and AI-related stocks such as Disco Corp and Lasertec each declined more than 1%. The sell-off in AI stocks came after Anthropic CEO Dario Amodei called for a slowdown in the development of advanced AI capabilities, with other major technology figures backing the proposal. Analysts have repeatedly cautioned about the sharp rally in AI-related stocks this year, highlighting concerns over elevated valuations. Anthropic Chief Executive Officer Dario Amodei said on Saturday that the company would introduce additional safeguards, including independent third-party evaluations, and urged the broader industry to slow the development of its most advanced models. OpenAI CEO Sam Altman backed the proposal, while xAI's Elon Musk said, "Dario is right." Meanwhile, OpenAI CEO Sam Altman said his company would not go public this year, citing the need to focus on safety. In an interview with Fortune published on Saturday, Altman said the AI firm would not launch an initial public offering this year as it focuses on safety. OpenAI and Anthropic are private companies, but both are widely expected to eventually go public. The latest warnings have raised concerns among investors that a slowdown in AI development could translate into weaker corporate spending and challenge earnings expectations across the AI supply chain. However, US President Donald Trump has downplayed growing concerns over AI risks, raising questions over how committed industry leaders will be to slowing the development of their most advanced—and lucrative—models amid intense competition from Chinese rivals. South Korean, Taiwanese and Japanese chip and technology companies, seen as the picks and shovels of the AI boom, are now in the spotlight as investors assess the risk slower AI-related spending. South Korea's Kospi fell 3.3% to 6,684.37, dragged lower by chipmakers SK Hynix and Samsung Electronics, which both lost more than 4%. Taiwan's Taiex fell 0.7%, while shares of Taiwan's leading AI chipmaker Taiwan Semiconductor Manufacturing Co. declined 1.2%. Hong Kong's Hang Seng rose 0.4% to 24,904.46, while the Shanghai Composite edged down less than 0.1% to 3,885.33. The shift comes at the start of a pivotal week for global markets, with a Fed meeting ahead as rising oil prices fuel inflation concerns and keep borrowing costs elevated. Three policy decisions, starting with the Fed and followed on successive days by policymakers in the UK and Japan, could reshape the global monetary policy outlook for the rest of 2026 and beyond. With oil prices firmly above $100 a barrel again and the Middle East conflict showing signs of renewed escalation, hopes among policymakers for a respite in global price pressures appear limited for now. (With inputs from Bloomberg and AP) Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. 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