FX.co ★ Japanese Shares Slip as Tech Sector Drags

The Nikkei 225 dipped by 0.2% to approximately 50,060 on Friday, concluding a three-day upward trend as technology stocks retreated, indicating that the recent rally might be waning. Throughout much of November, tech stocks came under pressure due to concerns about inflated AI valuations. Nonetheless, the benchmark index is poised to close the week on a positive note, buoyed by weak US economic indicators and dovish remarks from policymakers that heightened expectations for additional rate cuts by the Federal Reserve. Among the notable decliners were companies associated with technology and AI, such as Kioxia Holdings (down 2%), SoftBank Group (down 0.8%), Fujikura (down 0.5%), Advantest (down 0.2%), and Lasertec (down 0.5%). On the economic front, Tokyo's core inflation held steady in November, maintaining the Bank of Japan’s path toward a potential interest rate increase in the forthcoming months. Meanwhile, industrial production and retail sales for October surpassed market forecasts.