FX.co ★ Japanese Shares Fall, Nintendo Plunges

On Wednesday, the Nikkei 225 Index experienced a decline of 0.78%, closing at 54,293, thereby offsetting the gains made in the prior session. This drop was attributed to lackluster earnings from certain companies, which dampened investor sentiment. Furthermore, the Japanese market mirrored a tech-driven sell-off seen in Wall Street, as investors shifted their focus from high-value technology stocks to more cyclical sectors. Nintendo's shares fell sharply by 11% after its flagship Switch 2 console failed to sustain its momentum, and the company chose to maintain, rather than enhance, its annual earnings and hardware projections. Electronics manufacturer Ibiden also saw a significant drop of 14.2% due to disappointing third-quarter results, marking it as the poorest performer on the Nikkei. Other significant declines were observed in Advantest (-2.1%), Lasertec (-7.2%), SoftBank Group (-2.2%), Hitachi (-4.1%), and NEC Corp (-11.8%). Domestically, investor caution prevailed as they looked ahead to the upcoming snap lower house election scheduled for this weekend. The ruling Liberal Democratic Party (LDP), under the leadership of Prime Minister Sanae Takaichi, is anticipated to increase its number of seats and advance expansionary fiscal policies.