Feb 6 (Reuters) - Foreign investors pulled out of

Japanese stocks in the week through February 1 as domestic

AI-linked companies came under pressure following the emergence

of a cheaper Chinese AI model, threatening U.S. tech dominance.

As per data from Japan's Ministry of Finance, foreigners

sold 315.2 billion yen ($2.07 billion) worth of Japanese shares

on a net basis in the week, reversing from net purchases of

752.7 billion yen in the prior week.

AI-focused startup investor SoftBank Group dropped

nearly 11% in the week, contrasting with a 16.3% gain the

previous week. Chip-testing equipment maker Advantest ( ADTTF )

and chip-making equipment maker Tokyo Electron ( TOELF ) also

shed nearly 14% and 3.5%, respectively.

Overall, the Nikkei benchmark index shed 0.9% last

week. It lost an additional 1.87% this week as U.S. President

Donald Trump imposed tariffs on China, although he gave Mexico

and Canada a one-month reprieve.

Meanwhile, foreigners snapped up a net 724.5 billion yen

worth of long-term Japanese bonds, extending their purchases

into a third consecutive week. They, however, ditched 388.5

billion yen worth of short-term bills.

Simultaneously, Japanese investors acquired about 199.2

billion yen worth of foreign shares, which was their eighth

weekly net purchase in a row.

Conversely, they divested a net 1.46 trillion yen worth of

foreign long-term bonds, halting a three-week buying trend, but

snapped up short-term bills for a fourth straight week, to the

tune of 345.8 billion yen.

($1 = 152.2100 yen)