FX.co ★ Japanese Stocks Drop to Over Two-Week Low

The Nikkei 225 Index saw a decline of 1.8%, settling at approximately 49,428, marking its lowest point since October 24. Similarly, the broader Topix Index decreased by 1.2%, reaching 3,306 on Tuesday morning. This downturn continues the downward trend observed over the previous two sessions. The slump correlates with a weak performance on Wall Street overnight, as investors exercise caution ahead of Nvidia’s quarterly results. Additionally, traders remain apprehensive due to an impending meeting between Japanese Prime Minister Sanae Takaichi and Bank of Japan Governor Kazuo Ueda, alongside a separate discussion between Takaichi and the government’s tax commission later today. Takaichi is set to initiate discussions on a comprehensive tax reform aimed at bolstering investment and household expenditure while exploring new revenue streams to sustain fiscal discipline, as reported by Nikkei on Tuesday. Most sectors experienced declines, predominantly within the technology sector, with significant losses from companies such as Sumitomo Electric Industries (-6.8%), Furukawa Electric (-6.5%), Fujikura (-6.3%), and BayCurrent Inc. (-5.6%).